Israel and Egypt sign record-breaking energy deal

Israel has signed a record-breaking energy deal with Egypt believed to be worth up to $35 billion, with 130 bcm (billion cubic metres) of national gas to be supplied up until 2040.

According to a report from Reuters, the energy will be supplied from Leviathan, the largest natural gas field in the Mediterranean. Newmed, which described itself as Israel’s leading energy partnership in the exploration,development, production and sale of natural gas, told the wire agency that “this is the most strategically important export deal to ever occur in the eastern Mediterranean, and strengthens Egypt’s position as the most significant hub in the region.

“This deal, made possible by our strong regional partnerships, will unlock further regional export opportunities, once again proving that natural gas and the wider energy industry can be an anchor for collaboration.”

The Israeli firm told Reuters that the natural gas field had already supplied 23.5 bcm of gas to Egypt since 2020.

With more than 116 million people, Egypt is the largest Arab nation by population. It originally had plans to become a net exporter of energy, which relied heavily on the discovery of the Zohr offshore gas field in 2015, seen at the time as the Mediterranean’s largest. However, a significant downgrade in the field’s projected reserves has led to the country undergoing significant blackouts.

The deal has come even as Egyptian President Abdel Fattah el Sisi accused Israel on Tuesday of carrying out “a war of starvation and genocide” in Gaza. The border between Gaza and Egypt is blocked, with the latter controlling key border crossings out of the Strip.

Newmed told Reuters that the deal will also rely on the construction of a new pipeline between the two countries.