Tel Aviv (Agencies) 7 August 2025 — Israel has signed a landmark $35 billion natural gas export agreement with Egypt, marking the largest energy deal in the country’s history and reshaping the Eastern Mediterranean’s energy landscape. The deal, centered on the Leviathan offshore gas field, will supply Egypt with 130 billion cubic meters (bcm) of gas through 2040, or until the full contracted volume is delivered.
This is not Israel’s first foray into gas exports. The country began exporting natural gas in 2020, following the launch of production at Leviathan. An earlier agreement signed in 2019 committed Israel to supply Egypt with 60 bcm over a decade. Since then, Israel has delivered 23.5 bcm to Egypt, averaging around 4.5 bcm annually. The new deal significantly expands that partnership, more than doubling the total export volume.
The agreement comes as Egypt grapples with a deepening energy crisis, marked by rolling blackouts, declining domestic production, and surging demand. Once aspiring to be a regional gas hub, Egypt has become a net importer, recently securing over 150 liquefied natural gas (LNG) cargoes to meet domestic needs.
Under the new deal, gas will be exported in two phases. The first phase, beginning in early 2026, will deliver 20 bcm following the completion of new pipeline connections. The second phase will supply an additional 110 bcm after the Leviathan field undergoes a major expansion and a new transmission pipeline is constructed via Nitzana, near the Israel–Egypt border. The gas will be sold through Blue Ocean Energy, Egypt’s existing off-taker.
The Leviathan field, located off Israel’s Mediterranean coast, holds an estimated 600 bcm in reserves. Since production began in 2020, it has supplied 23.5 bcm to Egypt, with 2024 alone accounting for 11 bcm—half of which was exported to Egypt, and the remainder split between Israel and Jordan.
To support the expanded exports, Israel will invest in critical infrastructure, including a third pipeline from Leviathan to its production platform and an upgrade to the Ashkelon–Ashdod pipeline, boosting its capacity to Egypt. Leviathan’s annual output is expected to rise from 12 bcm to over 14 bcm, eventually reaching 21 bcm once the expansion is complete.
The deal carries significant geopolitical weight. It strengthens Egypt’s role as the Eastern Mediterranean’s energy gateway and enhances Israel’s energy security and regional influence. With Europe seeking alternatives to Russian gas, the partnership positions both countries as strategic suppliers in a shifting global energy market.
Energy officials from both nations hailed the agreement as a milestone in bilateral cooperation and a model for regional integration. Analysts say the deal could pave the way for deeper collaboration on energy infrastructure, LNG exports, and cross-border investment.
As Egypt battles domestic shortages and Israel expands its production capacity, the Leviathan deal underscores the growing interdependence of regional energy economies—and the strategic importance of natural gas in shaping future alliances.