In what officials are calling the largest export deal in Israel’s history, NewMed Energy and its partners have signed a monumental $35 billion agreement to export natural gas from Israel’s Leviathan reservoir to Egypt over the coming two decades.
The deal, finalized this week, underscores Israel’s growing influence as a major energy player in the Eastern Mediterranean and marks a significant milestone in regional cooperation amid evolving geopolitical dynamics. The agreement involves increasing capacity at the Leviathan gas field and expanding pipelines to facilitate the long-term export of natural gas to Egypt’s liquefaction facilities for re-export to Europe and other markets.
Yossi Abu, CEO of NewMed Energy, hailed the deal as a “strategic achievement for the region,” stating, “This agreement strengthens energy ties between Israel and Egypt, ensures long-term revenue for the Israeli economy, and boosts regional energy security.”
The Leviathan reservoir, located off Israel’s northern coast, is one of the largest natural gas discoveries in the past decade. With this new deal, gas exports to Egypt are expected to nearly double, positioning both countries as key players in Europe’s efforts to diversify its energy sources away from Russian supplies.
Egyptian officials welcomed the agreement, noting its alignment with Cairo’s ambitions to become a regional energy hub. The deal will also support Egypt’s domestic energy needs and expand its LNG (liquefied natural gas) exports.
Industry analysts view the agreement as a landmark in Middle Eastern energy diplomacy, especially as natural gas becomes increasingly central to global energy transition plans.
The $35 billion contract is expected to be implemented in phases, with infrastructure upgrades set to begin by early 2026. Once operational, the expanded gas flow will significantly boost Israel’s export capacity and deepen strategic ties between Jerusalem and Cairo.
