In a significant development, Israeli Prime Minister Benjamin Netanyahu announced on December 17, 2025, that the Israeli government has officially approved a landmark agreement to supply natural gas to Egypt. He characterized this contract as the "largest ever" in the history of Israel's energy sector.
This pivotal export agreement, which was actually signed back in August, involves the provision of up to $35 billion worth of natural gas sourced from the Leviathan natural gas field. The deal is expected to have profound implications not just for Israel but also for Egypt, which has been facing a pressing energy crisis.
During a televised address, Netanyahu stated, "I have today approved the largest gas deal in Israel's history. The deal amounts to 112 billion shekels, approximately $34.67 billion." He emphasized that this arrangement, developed in partnership with American Chevron and local Israeli companies, aims to boost Egypt’s energy security.
Netanyahu further noted that earlier delays in finalizing the agreement were due to some outstanding issues, but the deal is now poised to contribute to regional stability. This comes as Egypt has struggled to meet its energy demands, having invested billions in importing liquefied natural gas since its domestic production began to dwindle.
The country’s natural gas output started to decline in 2022, prompting it to shelve its aspirations of becoming a regional energy hub. Consequently, Egypt has increasingly relied on Israel to help fill the gap left by its own insufficient supplies.
As this situation unfolds, it raises important questions about energy dependency and regional cooperation in the Middle East. Will this deal pave the way for more collaborative efforts between neighboring countries, or could it lead to new tensions? What are your thoughts on the balance of power in the region as countries grapple with their energy needs?
