Approved $35bn gas deal with Egypt: Israeli PM Netanyahu

Israeli Prime Minister Benjamin Netanyahu said on Wednesday that he had approved what he described as the largest gas export agreement in the country’s history, a deal with Egypt valued at nearly $35 billion.

In a televised address, Netanyahu said the agreement was worth about 112 billion shekels, or roughly $34.7 billion, and added that around 58 billion shekels of that amount was expected to flow into state coffers. He said the deal involved the US energy major Chevron along with Israeli partners that would supply natural gas to Egypt.

Energy Minister Eli Cohen, who appeared alongside the prime minister, described the agreement as the biggest export deal Israel has ever concluded.

Netanyahu said the expected revenues would be used to strengthen sectors such as education, healthcare, infrastructure and security, and would help support future generations. He also said the agreement would reinforce Israel’s position as a key regional energy player, AFP reported.

Israeli energy company NewMed Energy had announced in August that it had signed a $35 billion agreement to supply natural gas to Egypt. The company said the deal would raise the total volume of gas exported to Egypt to about 130 billion cubic metres.

In a statement issued late on Wednesday, NewMed’s chief executive, Yossi Abu, said the agreement marked a significant milestone for the natural gas sector, ensuring continued investment in Israel and providing long-term regulatory stability.

However, the Movement for Quality Government, an Israeli civil society group that campaigns for transparency, expressed concern over the way the deal was approved. The organisation said it wanted the government to disclose the full details of the agreement and clarify its potential impact on long-term gas reserves and consumer prices.