Historic $35 billion gas deal signed between Israel and Egypt
Leviathan partners to export 130 BCM through 2040, in largest energy agreement in Israeli history.
The largest natural gas deal in Israel’s history was signed on Thursday, as Leviathan reservoir partners Ratio and NeoMed Energy, owned by Yitzhak Tshuva’s Delek Group, agreed to export natural gas to Egypt through 2040, in a deal valued at approximately $35 billion.
The agreement was signed with Blue Ocean, which will purchase the gas on behalf of the Egyptian economy. It includes the sale of 130 billion cubic meters (BCM) of natural gas in two stages.
This new deal builds on an existing 2019 export agreement for 60 BCM, under which gas deliveries began in 2020.
The first phase of the new deal, involving the sale of around 20 BCM, is expected to commence next year. The second phase, which includes the remaining 110 BCM, will begin once the Leviathan expansion project and the new Ramat Hovav–Nitzana pipeline are completed.
The expansion of the Leviathan reservoir will significantly increase Israel’s natural gas output, by an estimated 30%, bringing the reservoir’s total annual production capacity to approximately 21 BCM.
Once the second phase begins, the Leviathan partners are expected to supply 12 BCM of natural gas per year to Egypt.
According to the partners, the volume of gas to be exported was determined based on expected domestic demand in Israel. The timeline for supply was aligned with the progress of infrastructure projects designed to support the reservoir’s expansion and ensure sufficient domestic gas availability.
