Prime Minister Benjamin Netanyahu approved a historic $35 billion, 15‑year natural gas export deal with Egypt that Chevron will deliver. Roughly half of the revenues are expected to go to Israel’s state coffers. Energy Minister Eli Cohen, who had initially delayed the pact, endorsed the final terms. Separately, Germany expanded its purchase of Israel’s Arrow 3 missile‑defense system, raising that contract to $6.5 billion.
Netanyahu Approves Record $35B Natural Gas Export Deal With Egypt — Chevron To Supply Over 15 Years
FILE - An oil platform is seen in the Leviathan natural gas field on Jan. 31, 2019, in the Mediterranean Sea off Israel's coast. (Marc Israel Sellem/Pool via AP, File)
Israeli Prime Minister Benjamin Netanyahu announced Wednesday that he has approved a historic $35 billion natural gas export agreement with Egypt, the largest gas deal in Israel's history. The pact, expected to run for 15 years, is aimed at strengthening Israel’s regional energy role and could help ease tensions between the two countries strained by the two‑year war in Gaza.
Deal Structure and Financial Impact
The gas will be delivered to Egypt by U.S. energy giant Chevron, a principal owner of the offshore Mediterranean gas field. Officials estimate that roughly half of the revenues from the agreement will flow into Israel’s state coffers, providing a significant boost to public finances over the life of the contract.
Political Context and Reactions
In a recorded video statement, Netanyahu said the deal "greatly strengthens Israel’s position as a regional energy power, and it contributes to stability in our region." The announcement comes amid diplomatic efforts in which Egypt has acted as a key mediator with Hamas and in broader negotiations that led to the U.S.-brokered ceasefire in October.
"This agreement strengthens Israel’s standing in the region and contributes to stability," Netanyahu said.
Egypt did not immediately confirm the announcement. The pact follows earlier internal debate in Israel: Energy Minister Eli Cohen, a close Netanyahu ally, had previously delayed approval, saying the initial terms were not favorable. Those delays prompted U.S. Energy Secretary Chris Wright to cancel a planned trip to Israel in October. Cohen, however, stood with Netanyahu at Wednesday’s announcement and said he supports the final terms.
Background On Israel's Offshore Gas
Israel discovered substantial natural gas fields off its Mediterranean coast in the early 2000s and began exporting gas nearly a decade ago — first to Jordan and later to Egypt. The new agreement significantly expands the scale of exports to Cairo and cements Chevron’s role as a key supplier from the field.
Separate Defense Deal With Germany
In a related development, the Israeli Defense Ministry said German lawmakers approved an expansion of a defense agreement for Israel’s Arrow 3 missile‑defense system. The expansion raises the value of the deal from $3.5 billion to $6.5 billion, which the ministry called the largest Israeli defense export to date. Germany said it sought Arrow 3 to bolster its air defenses amid concerns about broader regional and global threats.
What To Watch: Watch for an official confirmation from Cairo, details on the final commercial terms and delivery schedule from Chevron, and any parliamentary or regulatory approvals required in Israel to finalize the agreement.
