Israel's Leviathan signs $35B natural gas supply deal with Egypt

Updated 8/7/2025 2:27:00 PM

Arab Finance: Israel's Leviathan natural gas field has penned a deal estimated at a value of $35 billion to supply gas to Egypt, NewMed Energy, one of the partners in the field, announced.

The agreement, which marks the largest export agreement in Israel’s history, was signed with Blue Ocean Energy, an existing off-taker of natural gas from Leviathan for Egypt.

Leviathan will sell about 130 billion cubic meters (bcm) of gas to Egypt through 2040, or until all of the contract quantities are fulfilled.

In the first phase, Leviathan will supply Egypt with 20 bcm of gas starting in early 2026 after the connection of additional pipelines.

The remaining 110 bcm will be exported in the second phase, which will begin after completion of the Leviathan expansion project and the construction of a new transmission pipeline from Israel to Egypt via Nitzana in Israel.

Having commenced production in January 2020, the Leviathan reservoir began supplying Egypt under the initial deal signed during 2019 for 60 bcm. This is expected to be fully supplied by the early 2030s.

Since the commencement of natural gas production from the reservoir, around 23.5 bcm of natural gas has been sold from Leviathan to the Egyptian market.

Yossi Abu, CEO of NewMed Energy, commented: "This is the most strategically important export deal to ever occur in the eastern Mediterranean, and strengthens Egypt's position as the most significant hub in the region.”

"This deal, made possible by our strong regional partnerships, will unlock further regional export opportunities, once again proving that natural gas and the wider energy industry can be an anchor for collaboration,” the CEO added.