Egypt signs record gas deal with Israel

Egypt signs a record gas deal with Israel, deepening energy ties amid public anger over Gaza.

Egypt signs record 35 billion gas deal with Israel

Egypt has signed a record gas deal valued at 35 billion dollars to import 130 bcm of gas from the Leviathan field to Egypt through 2040. NewMed, the lead co‑owner, says the agreement expands the 2018 arrangement and will channel gas via pipelines rather than LNG, a method the company argues is cheaper in transport and processing. The move comes as Egypt seeks to shore up supplies amid a drop in domestic gas production and rising demand.

The price rise is sharp: roughly 14.8 percent higher per bcm than the previous contract, and the full delivery depends on completing a new export pipeline project and upgrading the existing links. The first 20 bcm could begin flowing in early 2026 if the infrastructure is ready, but work has faced delays linked to the Gaza conflict. The deal is unfolding as public anger grows over Cairo’s perceived complicity in the Gaza siege, even as the government braced for higher LNG imports to meet domestic needs.

The agreement signals a strategic shift in Egypt’s energy policy, prioritizing cross‑border supply to fill gaps rather than solely boosting domestic production. It increases dependence on a politically volatile supplier and ties future cost stability to regional tensions. Infrastructure hurdles, not market design, appear to be the immediate bottleneck, threatening the promised pace of delivery. Public scrutiny of Cairo’s Gaza stance adds a second layer of risk, potentially constraining how far the government can push this energy formula without triggering social or diplomatic backlash.

Highlights

The coming months will test whether Cairo can translate a price bargain into reliable energy security and political stability.