Israel to finalise record gas deal with Egypt, supplying 130 bcm from Leviathan until 2040, boosting exports and regional energy security.
Israel is preparing to finalise what is being described as the largest natural gas supply agreement in its history, with neighbouring Egypt set to benefit from this landmark deal. Following nearly two years of delays, the Israeli government is expected to officially approve the contract within the next two weeks. The agreement centres on the export of natural gas from Leviathan, Israel’s most significant offshore gas field, and will mark a substantial shift in the country’s energy trade.
According to the terms outlined, Israel will commit to supplying 22% of Leviathan’s resources and around 13% of its total national gas output to Egypt. The deal is expected to last several years and is valued at up to $35 billion (€30 billion). Partners in the Leviathan field, including NewMed Energy (previously Delek Drilling), have hailed the contract as the “largest” in Israel’s energy history, noting that it will triple Israeli natural gas exports by 2028.
Under this agreement, Egypt will purchase 130 billion cubic metres of Israeli gas through 2040. This marks a significant expansion compared to the earlier 2019 agreement signed by then–Prime Minister Benjamin Netanyahu and Egyptian President Abdel Fattah el-Sisi. The earlier deal only covered 60 billion cubic metres of gas to be exported during the early 2020s. By contrast, the new arrangement reflects Israel’s ambition to ramp up production, secure long-term export markets, and reinforce regional energy cooperation.
The deal also aligns with Egypt’s strategic energy goals. The gas supply will guarantee Cairo a reliable flow for its power plants and further bolster its liquefied natural gas (LNG) sector, enabling the country to maintain its role as a regional energy hub. With increased access to Israeli gas, Egypt can strengthen its LNG exports to Asia and Europe, both of which are seeking diversified and stable energy sources.
Implementation of the deal will take place in phases. According to reports in the Hebrew daily Globes, Egypt will first import 20 billion cubic metres of gas through Blue Ocean Energy starting in the first half of 2026. Once Leviathan’s production capacity expands, Cairo will import an additional 110 billion cubic metres. The expansion will increase Leviathan’s annual production from its current 21 billion cubic metres to 23 billion cubic metres, cementing its status as a crucial regional energy asset.
For Israel’s domestic market, the deal includes measures to ensure energy security. By 2035, 60% of Leviathan’s production will be directed toward exports, while 40% will remain for local consumption. In 2024 alone, Leviathan produced 11 billion cubic metres of gas, with half of this exported to Egypt and the remainder shared between Israel and Jordan. NewMed Energy has confirmed that by the 2040s, Leviathan will remain Israel’s primary natural gas source, supplying the majority of the nation’s demand until the end of the field’s lifespan.
This landmark deal reflects not only Israel’s ambition to expand its role in the global energy market but also highlights deepening economic ties with Egypt, reinforcing regional energy interdependence at a time of rising global demand.
