Full Breakdown
Israel and Egypt Move Forward on $35 Billion Gas Export Agreement
12/12/2025, 2:03:28 AM
Overview of the Gas Export Agreement
Israeli Energy Minister Eli Cohen announced that Israel and Egypt are on the verge of finalizing a significant natural gas export agreement valued at $35 billion. This deal, which aims to export approximately 130 billion cubic meters of gas from Israel's Leviathan gas field to Egypt, is expected to be signed within weeks. Cohen emphasized that the agreement is crucial for both countries' energy needs and regional stability, asserting that Israel has sufficient gas reserves for 30 years of domestic consumption and exports.
Background and Context
The gas export agreement was initially signed in August 2025, marking a milestone in regional energy cooperation. The deal aims to support Egypt's ambitions to enhance its liquefied natural gas (LNG) exports while addressing its domestic electricity shortages. However, the negotiations faced delays due to political tensions and security concerns, particularly regarding Egypt's adherence to the security annex of the 1979 peace treaty with Israel.
Key Figures Involved
Eli Cohen, Israel's Energy Minister, has been a prominent advocate for the deal, arguing that it aligns with Israel's economic and geopolitical interests. The agreement also involves major energy companies, including Chevron Corp., NewMed Energy, and Ratio Petroleum Energy, which are integral to the gas export operations.
Current Status of Negotiations
Cohen indicated that discussions between the Israeli and Egyptian governments, as well as energy companies, have progressed significantly, with only a few security clarifications remaining. Reports suggest that U.S. actors have mediated the final stages of the negotiations, highlighting the deal's importance for regional energy security.
Criticism and Opposition
Despite the optimism surrounding the agreement, there have been concerns regarding the implications for Israel's security and the pricing structure for Israeli consumers. Cohen previously stated that he would not approve the deal without ensuring that Israel's security interests are safeguarded and that a fair price is established for domestic consumers.
Official Statements & Responses
Cohen described the anticipated agreement as "historic," asserting that it would lead to lower energy prices for Israeli consumers and bolster Israel's international standing. He noted that the deal would not only benefit the economies of both nations but also promote regional stability.
Verbatim Quotes
- “leaving natural gas in the seabed (of the Mediterranean) contradicts economic logic and Israel’s geopolitical needs,” — Eli Cohen, Israeli Energy Minister
- “As a member of the cabinet, I will not approve the deal before ensuring that Israel’s security interests are protected and that a fair and competitive price is guaranteed for Israeli citizens,” — Eli Cohen, Israeli Energy Minister
What's Next
The finalization of the gas export agreement is expected imminently, with both countries preparing for the signing. This development is critical for Egypt, which has seen a decline in domestic gas production and relies heavily on imports to meet its energy demands. The agreement is anticipated to play a vital role in stabilizing Egypt's energy supply and enhancing its regional influence.
