Israel Approves $37 Billion Gas Export Deal to Egypt

Israel has issued the long‑awaited export permit that unlocks a $37 billion agreement to ship natural gas to Egypt. The authorization marks the final regulatory hurdle for a transaction that was first disclosed by the involved energy firms in August.

Background of the agreement

The deal links Israel’s offshore Leviathan gas field with Egypt’s growing domestic demand and its strategic position as a regional energy hub. Under the terms, several billion cubic meters of gas will be transported via a newly constructed pipeline that will cross the Mediterranean Sea and land at an Egyptian processing terminal.

Key players

The partnership is spearheaded by Delek Group and Energean on the Israeli side, while Egyptian Natural Gas Holding Company (EGAS) and Egyptian Gas Holding Company (EGHC) represent the Egyptian interests. All parties have highlighted the project’s potential to deepen economic ties and enhance energy security across the Eastern Mediterranean.

Economic and geopolitical impact

Analysts estimate that the contract could generate up to 10,000 jobs in construction, operations, and ancillary services, while boosting export revenues for Israel by several hundred million dollars annually. For Egypt, the influx of reliable gas supplies is expected to alleviate chronic electricity shortages and support industrial expansion.

Reactions

Egyptian President Abdel Fattah el‑Sisi welcomed the development, stating that “the agreement underscores the spirit of cooperation that is essential for regional stability.” Israeli Energy Minister Eli Cohen described the permit as “a milestone that paves the way for a new era of energy partnership between our peoples.”

Next steps

With the export license now in place, construction of the subsea pipeline is slated to begin early next year, aiming for first gas deliveries by the end of 2027. Both governments have pledged to streamline any remaining bureaucratic procedures to keep the project on schedule.