Netanyahu approves major natural gas deal with Egypt
“The deal is worth 112 billion shekels, the largest gas deal in Israel's history,” Netanyahu said in a televised statement alongside Energy Minister Eli Cohen. He added: “The deal with American company Chevron was approved after I secured our vital security interests.” He emphasized that “first and foremost, the deal requires companies to sell gas at a good price to Israeli citizens.”
There has been no official confirmation from Egyptian authorities regarding the agreement.
Reports indicate that Netanyahu had previously instructed that the deal should not proceed without his approval, amid Israeli claims that Egypt violated the 1979 peace treaty by military deployments in Sinai—a claim Cairo denies.
The 1979 Egypt-Israel peace treaty, signed in Washington following the Camp David Accords, ended the state of war between the two countries, normalized relations, mandated the withdrawal of Israeli forces from Sinai, and required the area to remain demilitarized.
According to reports, the agreement expands on a previous deal signed in 2019, under which Israel exported 60 billion cubic meters of gas to Egypt. Under the new arrangement, partners will sell 130 billion cubic meters of gas to Egypt through 2040 for about $35 billion.
The Leviathan gas field, from which the gas will be supplied, is operated by Noble Energy (39.66%), acquired by Chevron in October 2020; NewMed Energy Partnership (45.33%); and Ratio Oil Exploration (15%). The Egyptian energy company BOE (Blue Ocean Energy) is the buyer.
This deal adds to a series of Israeli natural gas exports to Egypt over the past five years and was seen as crucial after reports that Egypt might seek Qatari gas if Israel failed to approve the agreement.
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