Partners in Israel’s Leviathan gas field have finalized a landmark US $35bn agreement to export 130 billion cubic meters (bcm) of natural gas to Egypt through 2040, marking the largest energy export deal in Israel’s history.
NewMed Energy, formerly Delek Drilling, which holds a 45.3% stake in Leviathan, announced the deal on Thursday. U.S.-based Chevron and Ratio Oil Corp. are also partners in the field, located 120 kilometers offshore Haifa. The deal will significantly expand existing exports, increasing annual volumes from 4.7 bcm to as much as 13 bcm in two phases, beginning in 2026.
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NewMed CEO Yossi Abu hailed the agreement as a strategic breakthrough for regional cooperation, noting that Egypt would cement its role as a key energy hub in the eastern Mediterranean. The gas will be delivered via existing infrastructure and a planned pipeline through Nitzana, which will support the Leviathan reservoir’s planned production expansion.
The Leviathan field has been exporting to Egypt since 2020 under a previous 60 bcm agreement. To date, 23.5 bcm has been supplied. The new deal comes despite mounting diplomatic tensions over Israel’s military campaign in Gaza. Egypt has sharply criticized Israel’s actions during the ongoing conflict, which has resulted in tens of thousands of casualties. However, Cairo’s domestic energy needs remain pressing, with Israeli gas currently covering 15–20% of Egypt’s consumption.
The Israeli Finance Ministry has cautioned that robust exports could strain domestic gas supplies in coming decades. Nevertheless, NewMed asserts the expansion will secure Israeli energy needs through 2064. Since 2019, gas royalties and taxes from Leviathan have contributed nearly NIS 30 billion to Israeli state coffers.