Netanyahu Announces Historic Gas Deal with Egypt
In a recorded statement released on Wednesday evening, Israeli Prime Minister Benjamin Netanyahu announced the approval of a significant gas deal with Egypt, valued at approximately 112 billion shekels. Netanyahu stated that this agreement is poised to generate around 58 billion shekels for the Israeli treasury, reiterating its potential to reinforce Israel’s status as a regional energy powerhouse.
Details of the Gas Deal
Netanyahu highlighted that the gas will be transported to Egypt through the Leviathan gas field, with initial revenue anticipated to be half a billion shekels annually during the first four years. Following this period, the projections indicate annual revenues could surge to six billion shekels. The Prime Minister emphasized that these funds would aim to bolster sectors such as education, healthcare, infrastructure, and security, benefiting future generations.
The gas supply will be facilitated in partnership with the American company Chevron and other Israeli firms, contributing to Egypt’s electricity supply, specifically about 25% of its energy needs. Netanyahu commented, “This deal strengthens Israel’s position as a regional energy power and contributes to stability in our region. It encourages other companies to invest in gas exploration in Israel’s economic waters.”
U.S. Influence and Diplomatic Context
The approval comes in the wake of mounting pressure from the Trump administration, which had urged Netanyahu to finalize the gas deal as part of efforts to enhance relations with Egypt post-conflict in Gaza. Egyptian President Abdel Fattah el-Sisi had endorsed the deal back in July, despite facing internal and international criticism. However, Israeli officials delayed the approval for five months.
Reports indicate that the U.S. has been facilitating a potential meeting between Netanyahu and el-Sisi, contingent upon signing the gas agreement. A senior American official described the gas sale as a crucial opportunity that could foster mutual dependence between Israel and Egypt, potentially leading to warmer relations and reduced chances of conflict.
Future Meetings and Regional Impact
Netanyahu aspires to hold a three-way meeting with President Trump and President el-Sisi later this month at Mar-a-Lago. Yet, Egyptian officials are reportedly hesitant to convene without additional measures from Israel concerning the implementation of the gas agreement and the resolution of the conflict in Gaza.
Chevron has welcomed the agreement, recognizing it as a significant mileststart that lays the groundwork for enhancing the production capabilities of the Leviathan field and exemplifying the strong partnership between the company and Israel, while also focusing on securing energy in the Eastern Mediterranean.
By securing this gas deal, Israel not only strengthens its energy capabilities but also aims to promote regional stability and international cooperation in energy matters.