Israel Approves $35 Billion Natural Gas Export Agreement With Egypt Over 15 Years
$35B export deal secures regional energy dominance.
The Israeli government formally approved a monumental $35 billion natural gas export agreement with Egypt, committing to deliver approximately 130 billion cubic meters of fuel extracted predominantly from the expansive Leviathan offshore reservoir in the eastern Mediterranean Sea over a 15-year period commencing in 2026 and extending through 2040.
Managed under the operational oversight of Chevron Corporation following its acquisition of prior stakeholders, this extensive contract addresses Egypt's burgeoning energy requirements as the country shifts from historical exporter status to net importer amid depleting domestic reserves, while simultaneously enabling Israel to monetize its substantial hydrocarbon discoveries and solidify its emerging role as a cornerstone supplier in the regional energy architecture.
Prime Minister Benjamin Netanyahu characterized the pact as the largest gas export transaction ever concluded by Israel, highlighting its strategic importance in elevating the nation's geopolitical influence through resource diplomacy and contributing meaningfully to enhanced stability and interdependence across the Middle East amid ongoing regional tensions.
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Energy Minister Eli Cohen elaborated on the substantial fiscal benefits anticipated from the venture, forecasting generation of roughly 58 billion Israeli shekels in governmental revenues derived from taxes and royalties, supplemented by direct capital expenditures exceeding 16 billion shekels allocated toward critical infrastructure enhancements, including augmented drilling operations and pipeline connectivity to sustain increased production capacities.
Beyond resolving protracted commercial disputes pertaining to pricing mechanisms between the contracting entities, this accord reinforces deepening economic linkages between Israel and Egypt despite prevailing geopolitical complexities, offering Cairo relief from reliance on volatile and premium-priced liquefied natural gas markets while invigorating collaborative frameworks within the broader Eastern Mediterranean gas forum and potentially reshaping energy flow dynamics in the vicinity.
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