Israel has formally approved its long-awaited natural gas export deal with Egypt, as relayed by the country's Prime Minister Benjamin Netanyahu on Wednesday.

The deal will see Israeli gas supplied to Egypt via the Leviathan offshore gas field, boosting energy cooperation between the two regional heavyweights despite recent political and security difficulties.

“This deal with the American Chevron company, with Israeli partners, will supply gas to Egypt,” Mr Netanyahu said on TV, as seen on The National News.

Under the provisions of the agreement, which was signed in August 2025, Israel is projected to sell around 130 billion cubic meters of natural gas to Egypt over 15 years.

The agreement's overall value is projected to be up to $35 billion, making it one of the largest cross-border energy transactions in the Eastern Mediterranean.

Suspension of the gas deal

The deal has been on hold for several weeks due to what could only be described as a conflict of interest.

In November, Israeli officials made it clear that the agreement would not proceed unless certain requirements were met.

Eli Cohen, Israel's Energy and Infrastructure Minister, stated at the time that the government would not finalize the agreement until Israel's national interests were adequately protected and reasonable price arrangements were established.

However, Israel took action this week to restart the agreement, showing renewed momentum after months of negotiations.

Chevron Corp., NewMed Energy, and Ratio Petroleum Energy are among the project's industry partners. The Leviathan gas field is jointly operated by them.

The partners have agreed to ensure that shipments to Egypt do not jeopardize pricing stability or supply security in Israel, which had previously contributed to the delay.

Israel and Egypt's historic gas deal

Israel and Egypt signed a historic $35 billion natural gas agreement back in August.

The agreement was signed between Israel’s Leviathan partners, led by NewMed Energy, and the U.S. company Chevron.

According to the agreement, Leviathan, which is located off the Mediterranean coast of Israel and has reserves of nearly 600 billion cubic meters, will sell Egypt approximately 130 billion cubic meters of gas until 2040, or until all agreed-upon quantities are satisfied.

The arrangement will allow Egypt to increase its LNG exports while also fulfilling expanding domestic demand in the face of persistent power outages.

To make this possible, both countries want to improve infrastructure, including a new cross-border pipeline through Nitzana and capacity increases to Leviathan.

Phase one will produce roughly 20 billion cubic meters by 2026, with continuing expansions through 2040. (Business Insider Africa)