Israel has approved a deal that will supply natural gas to Egypt, Prime Minister Benjamin Netanyahu said on Wednesday, describing it as the country's “largest ever” gas deal.
Israel signed the export agreement in August to supply up to $35 billion of gas to Egypt from the Leviathan natural gasfield.
“This deal with the American Chevron company, with Israeli partners, will supply gas to Egypt,” Mr Netanyahu said on TV.
He said the deal, which had been delayed over some outstanding issues, would help to secure stability in the region.
Energy Minister Eli Cohen, who was present during Mr Netanyahu's address, said it was the “largest export deal in the state's history”.
The Prime Minister said the money would “strengthen education, health care, infrastructure, security and the future of the next generations”.
“This deal greatly strengthens Israel's status as a regional energy power, and it contributes to stability in our region,” Mr Netanyahu said.
It should ease an energy crisis in Egypt, which has spent billions of dollars on importing liquefied natural gas since its own supplies fell short of demand.
Egypt's production began to decline in 2022, forcing it to abandon its ambitions to become a regional supplier. It has increasingly turned to Israel to make up the shortfall.
The deal includes an aggregate export of about 130 billion cubic metres of natural gas from the Leviathan gasfield to the Egyptian market, NewMed Energy, one of the partners in the gasfield, said in a statement in August.
Under the terms of the deal, signed by NewMed, its partners and Blue Ocean Energy – an existing taker of natural gas from Leviathan for Egypt – the supply of gas to Cairo is expected to continue until 2040, or until all of the contract quantities are fulfilled.
NewMed confirmed after Mr Netanyahu's address that it had received approval to export gas to Egypt.
“This is a historic day for the natural gas sector, one that guarantees continued investment in Israel and creates regulatory stability for years to come,” NewMed chief executive Yossi Abu was quoted as saying in the statement.
