Israel Egypt Seal Major Gas Supply Deal
Israel, Egypt Sign Long-Term Gas Deal to Ease Cairo’s Energy Crunch
CAIRO — Egypt has struck a major deal with Israel’s Leviathan gas field that could help ease the country’s deepening energy crisis, officials said Thursday.
Under the agreement, Leviathan — located off Israel’s Mediterranean coast and holding an estimated 600 billion cubic meters (bcm) of gas — will supply Egypt with about 130 bcm through 2040, or until the contracted amount is delivered.
Egypt has faced mounting energy shortages since its gas production began falling in 2022. In recent years, it has spent billions of dollars importing liquefied natural gas (LNG) to meet demand, with Israeli supplies helping to fill the gap.
Gas exports from Leviathan were briefly interrupted in June during a 12-day war between Israel and Iran, but have since resumed. The new deal will see Leviathan deliver 20 bcm to Egypt in the first phase, starting in early 2026, after new pipelines are connected. The remaining 110 bcm will be shipped in a second phase, once an expansion project and a new transmission line via Nitzana are completed.
Analysts say the deal could save Egypt significant costs, with Israeli gas priced at about $7.75 per million British thermal units — nearly half the $13.5 average for imported LNG, which requires costly cooling, shipping, and re-gasification.
Egypt’s domestic gas production has plunged more than 42% in under five years, falling from 6,133 million cubic meters in March 2021 to 3,545 mcm in May 2025. The Leviathan field, operated by Chevron with a 40% stake, began supplying Egypt in 2020 and also exports to Jordan.
Officials from Egypt’s Ministry of Petroleum, which oversees energy imports, did not immediately comment on the agreement.
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