Israel Signs Largest Energy Deal in Its History With Egypt, Worth $34.7 Billion

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – Israel has signed the largest natural gas agreement in its history, approving a landmark deal with Egypt valued at NIS 112 billion (approximately $34.7 billion), Prime Minister Benjamin Netanyahu announced Wednesday night. The agreement is expected to funnel roughly NIS 58 billion ($18 billion) directly into Israeli state coffers over the life of the deal, significantly boosting public revenues and cementing Israel’s status as a regional energy power.

Speaking alongside Energy Minister Eli Cohen, Netanyahu said the agreement covers long-term exports of natural gas from Israel’s Leviathan offshore reservoir to Egypt, with exports projected to run through 2040.

In the first four years alone, Israel is expected to receive approximately NIS 500 million ($155 million), with annual revenues projected to reach approximately NIS 6 billion ($1.9 billion) by 2033 as production and infrastructure expand.

“This money will strengthen education, health care, infrastructure, security, and the future of the coming generations,” Netanyahu said. He emphasized that he approved the deal only after ensuring it met Israel’s strategic and security needs. The prime minister added that the agreement strengthens Israel’s standing as a regional energy superpower and contributes to long-term stability in the Middle East.

The deal was signed with U.S. energy giant Chevron, underscoring Washington’s economic stake in the agreement. U.S. officials have encouraged Israel to finalize the deal, viewing it as a means to deepen regional cooperation, enhance energy security, and promote stability between Israel and Egypt. One U.S. official told Axios that selling gas to Egypt would create interdependence, warm relations between the two countries, and help prevent future conflict.

Netanyahu timed the announcement to draw a symbolic connection to the Jewish holiday of Hanukkah. “On the fourth candle of Hanukkah, we have brought another jug of oil to the nation of Israel,” he said. “But this flame will burn not just for eight days, but for decades to come.”

Energy Minister Eli Cohen called the agreement “a historic moment for the State of Israel — both strategically and economically.” He said months of intensive negotiations ensured Israel’s security interests were protected and that infrastructure investments tied to the deal would total about NIS 16 billion ($5 billion). Cohen stressed that the agreement prioritizes Israel’s domestic gas market, with mechanisms designed to improve pricing for Israeli consumers.

According to the Energy and Infrastructure Ministry, this is the first gas export approval that explicitly guarantees priority for domestic supply. The Leviathan field will be required to meet all of Israel’s demand before exports are permitted. Beginning in 2032, the Petroleum Commissioner will have the authority to reduce export volumes, if necessary, to prioritize domestic needs or maintain market competition.

Netanyahu also addressed past domestic opposition to gas development, noting that critics once warned that extraction would damage Israel’s economy. “Today it is clear that gas production has brought huge profits to Israel,” he said, crediting the sector as one reason Israel’s economy has ranked among the strongest globally.

Beyond economics, the agreement is widely seen as paving the way for a high-level diplomatic meeting. Israeli and Egyptian officials have indicated that approval of the gas deal was a prerequisite for Egyptian President Abdel Fattah el-Sisi to participate in a trilateral summit with Netanyahu and U.S. President Donald Trump. The meeting is expected to take place later this month at Trump’s Mar-a-Lago estate.

While Netanyahu reiterated that Israel’s security interests were safeguarded, Egypt has not made specific commitments public. Israeli officials have previously raised concerns related to weapons smuggling into Gaza and alleged violations of the 1979 peace treaty involving military deployments in the Sinai Peninsula.

U.S. officials view the agreement as serving broader American strategic interests as well. In addition to Chevron’s involvement, Washington sees strengthened Israeli-Egyptian ties and increased regional stability as aligning with U.S. geopolitical and economic goals.

“There will be more pleasant surprises,” Netanyahu concluded, signaling that the gas deal may be only one part of a broader regional and economic strategy.

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