Israeli Prime Minister Benjamin Netanyahu, on December 17, approved a major gas export deal with Egypt worth nearly USD 35 billion, stating the money would “strengthen education, health care, infrastructure, security, and the future of the next generations,” apart from bolstering “Israel’s status as a regional energy power.”
“Today, I approved the largest gas deal in Israel’s history. The deal is worth 112 billion shekels (USD 34.7 billion). Of this total, 58 billion shekels (USD 18 billion) will go to the state coffers. The agreement is with the American company Chevron, with Israeli partners who will supply gas to Egypt,” Benjamin Netanyahu said during a televised address.
Energy Minister Eli Cohen, who was present during the address, said it was the “largest export deal in the state’s history.”
Israeli firm NewMed Energy announced in August 2025 the signing of a USD 35 billion deal to provide Egypt with natural gas, and as per the firm, the deal would increase the total volume of gas supplied to Egypt to 130 billion cubic metres.
In a statement issued late on November 17, NewMed CEO Yossi Abu said it was “a historic day for the natural gas sector, one that guarantees continued investment in Israel and creates regulatory stability for years to come.”
In 2024, Egypt imported a record 981 million cubic feet per day of natural gas from Israel, registering a 18.2% year-over-year increase. Egypt imports up to 20% of its gas from Israel. Over the past couple of years, the nation has witnessed its ambitions to become a regional natural gas supply and LNG export hub go up in flames, with a series of setbacks turning the country from a net exporter of the vital commodity to an importer.
Egypt’s natural gas production has experienced a significant decline in recent years, particularly since its peak in 2021 at around 6.6 bcf/d. Data from early 2025 indicated an eight-year low of below 5 billion cubic feet per day.
Egypt’s existing gas fields, including the massive Zohr one, are facing the phenomenon of natural depletion, and it has become a headache for Cairo as Zohr itself accounts for about 40% of the North African country’s total gas production. Production at Zohr has dropped by about a third since 2019.
Lack of discoveries and investment has also taken a toll, with very few significant new gas fields discovered since Zohr in 2015. Also, insufficient investment in exploration and development, partly due to the government’s arrears owed to foreign oil companies, has hampered efforts to offset the natural decline of existing wells.