Israeli Prime Minister Benjamin Netanyahu has approved a landmark $35 billion natural gas export deal with Egypt—the biggest in Israel’s history. The long-term agreement signals a major economic boost for Israel and may help ease diplomatic strains between the two neighbours following prolonged tensions linked to the Gaza conflict.
Chevron-Led Deal Positions Israel as Regional Energy Power
The agreement will see natural gas supplied from Israel’s offshore Mediterranean fields to Egypt over the next 15 years, with deliveries managed by U.S. energy major Chevron. Netanyahu described the deal as a strategic milestone that strengthens Israel’s economic security and reinforces its status as a key regional energy supplier.
Key Details, Political Context, and Strategic Impact
- Gas exports worth $35 billion, making it Israel’s largest-ever energy deal
- 15-year supply agreement ensures long-term revenue stability
- U.S. energy giant Chevron to oversee gas delivery
- Nearly 50% of proceeds expected to go to Israel’s state treasury
- Deal may help repair strained Israel–Egypt relations after the Gaza war
- Egypt remains a key mediator between Israel and Hamas
- Agreement faced delays due to concerns raised by Israel’s energy minister
- U.S. pressure played a role after earlier objections stalled progress
- Egypt has not immediately confirmed the announcement
- Comes alongside Germany expanding Israel’s Arrow 3 missile defence deal to $6.5 billion
The gas export agreement underscores Israel’s growing role as a regional energy power while highlighting how economic cooperation can coexist with political disagreements. Paired with expanding defence exports, the deal reflects Israel’s broader strategy of strengthening economic and security ties amid a shifting geopolitical landscape.
