Israel Approves $35 Billion Gas Export Deal to Egypt, Biggest Export Deal Ever

Israeli Prime Minister Benjamin Netanyahu said on Wednesday, December 17, that he has approved a $35 billion natural gas export deal to Egypt.  Notably, it is the biggest gas export deal in Israeli history. Interestingly, this agreement could also help to reset and repair relations between the two countries, which were strained during the two-year war in the Gaza Strip.

Netanyahu said, ‘gas export deal greatly boosts Israel’s position’

The gas will be delivered to Egypt over the next 15 years by U.S. energy giant Chevron, a key owner of the gas field off Israel’s coast in the Mediterranean Sea. Around 50% of the proceeds are expected to go to Israel’s government.

In a recorded video statement, Israeli Prime Minister Netanyahu stated: “The gas export deal greatly boosts Israel’s position as a regional energy power, and it contributes to stability in our region”. Egypt, the nation which borders both Israel and Gaza, has served as a mediator between Israel and the Palestinian militant Hamas group, leading up to the U.S.-brokered ceasefire that was agreed on in October. Notably, Cairo, the heart of Egypt, has also been a vocal critic of Israel’s offensive, which has killed tens of thousands of Palestinians and prompted widespread destruction in Gaza.

Egypt has yet to confirm the announcement

However, Egypt did not immediately confirm the Israeli Prime Minister’s announcement. Israeli Energy Minister Eli Cohen, a close Netanyahu ally, held up the export deal with Egypt earlier, stating the terms were not favourable to Israel. His delays prompted U.S. Energy Secretary Chris Wright to cancel a trip to Israel in October. But he stood with Netanyahu during the announcement and mentioned that he supported the final terms of the gas export deal. Israel found sizeable natural gas fields off its Mediterranean coast in the early 2000s and began exporting gas first to Jordan and later to Egypt around a decade ago.