The largest export contract in Israel's history: Egypt to buy $35 billion worth of gas
Leviathan gas platform in the Mediterranean Sea (photo - EPA)

Israeli companies operating the Leviathan gas field have signed the largest export agreement in the country's history worth $35 to supply gas to Egypt. About said NewMed Energy, which is one of the project partners.

Leviathan will supply 130 billion cubic meters of gas to Egypt, starting with 20 billion in the first half of 2026 and increasing to 110 billion after the project is expanded and a new pipeline from Israel to Egypt is built through Nitzan in Israel.

The gas will be supplied to the buyer, Blue Ocean Energy, until 2040 or until the entire contracted volume is sold.

"This is the most strategically important export deal ever concluded in the Eastern Mediterranean, and it strengthens Egypt's position as the most important transportation hub in the region," said Yossi Abou, CEO of NewMed.

The resource base of the Leviathan field, located in the Israeli waters of the Mediterranean Sea, is estimated at 600 billion cubic meters.

Gas supplies from this field to Egypt began almost immediately after the start of production in 2020. The previous contract signed in 2019 provided for the supply of 60 bcm. The field's export capacity is expected to be fully utilized by the early 2030s.

According to NewMed, Leviathan has already exported 23.5 billion cubic meters of natural gas to Egypt since the project's launch.

Egypt needs more gas as growing demand and declining production from its own fields create a shortage, notes Bloomberg. The most populous Arab country has signed major deals for liquefied natural gas supplies, which turned it from an exporter to a net importer last year.

During the 12-day war between Israel and Iran in June exports from Leviathan were suspended for security reasons.

  • In the summer of 2022, the European Union signed a memorandum of understanding on natural gas exports on Wednesday. It envisaged the export of gas from Israel by pipeline to Egypt, where it would be liquefied and ship to Europe by tankers.
  • This agreement could have turned Egypt into a major regional energy hub, but the country refused to take this step.