Israel has formally approved a long-delayed natural gas export agreement with Egypt, clearing the way for what officials describe as the largest export deal in the country’s history and anchoring Africa more firmly into the evolving energy map of the Eastern Mediterranean. The agreement, confirmed this week by Israeli Prime Minister Benjamin Netanyahu, commits gas from Israel’s Leviathan offshore field to Egypt over a 15-year period, marking a decisive moment for regional energy cooperation and African gas-linked infrastructure.
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Under the terms of the deal, Israel is expected to supply approximately 130 billion cubic metres of natural gas to Egypt between now and 2040. The transaction, signed in August and valued at up to $35 billion, ranks among the largest cross-border energy agreements in the Mediterranean basin. Gas will flow from the Leviathan field, jointly operated by Chevron, NewMed Energy and Ratio Petroleum Energy, strengthening Egypt’s position as a regional gas hub while securing a long-term export outlet for Israel.
The agreement had faced weeks of uncertainty after Israeli authorities paused final approval in November, citing concerns over domestic supply security and pricing stability. Officials insisted that exports could not proceed unless safeguards were put in place to ensure that Israeli consumers would not face shortages or price shocks. Those concerns were resolved through revised commercial terms that prioritize domestic supply obligations before export volumes are dispatched to Egypt.
For Egypt, the deal arrives at a critical time. The country has struggled with power shortages driven by rising domestic demand, declining output from mature gas fields and constrained foreign currency reserves. Securing long-term gas inflows allows Cairo to stabilize electricity generation while feeding its liquefied natural gas facilities, which export to Europe, Asia and increasingly African markets. Egypt currently operates two LNG terminals, making it one of the few African countries with the infrastructure needed to monetize regional gas at scale.
The deal’s African significance extends beyond Egypt’s borders. As Europe continues to diversify away from Russian gas, LNG produced in Egypt using Israeli feedstock has become part of global supply rebalancing. This positions North Africa as a transit and processing hub rather than a peripheral supplier. It also reinforces a model in which African energy security, export earnings and infrastructure development are increasingly tied to cross-border gas flows rather than isolated national projects.
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Leviathan itself is one of the largest offshore gas discoveries in the Mediterranean, with estimated reserves of nearly 600 billion cubic metres. Production is set to expand in phases, with output expected to reach around 20 billion cubic metres annually by 2026 before scaling further toward 2040. To support higher volumes, Israel and Egypt plan to upgrade existing infrastructure, including expanding capacity at Leviathan and developing a new cross-border pipeline through Nitzana.
From a sustainability perspective, the deal highlights the role natural gas continues to play in Africa’s energy transition. While gas is a fossil fuel, it remains central to replacing heavier fuels such as diesel and fuel oil in power generation across much of the continent. In Egypt, gas-fired power plants already underpin the grid, and additional supply could reduce reliance on more carbon-intensive alternatives while supporting industrial growth.
At the same time, long-term gas contracts raise questions about lock-in risks as global energy systems move toward renewables. African countries face the challenge of balancing immediate energy needs, fiscal pressures and climate commitments. In this context, Egypt’s strategy has been to use gas revenues to stabilize the economy while expanding investments in solar and wind, particularly in the Benban Solar Park and Gulf of Suez wind corridor.
For Israel, the agreement consolidates its emergence as an energy exporter with Africa as a primary destination. Unlike previous deals focused on Europe or regional neighbors, the Egypt agreement embeds Israeli gas directly into African energy systems and export chains. It also deepens economic ties between two countries whose cooperation has expanded quietly in energy, trade and security despite periodic political tensions.
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As gas begins to flow under the revised terms, the deal will be closely watched by policymakers and investors across Africa. It illustrates how infrastructure, geopolitics and energy demand are converging to reshape supply routes linking the Mediterranean to African markets. Whether this model strengthens long-term energy resilience or delays deeper decarbonization will depend on how revenues are reinvested and how quickly alternatives scale alongside gas.
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