Israel and Egypt are restarting their $35 billion gas deal after months of delays. The pause was due to political issues, security concerns, and disagreements over gas prices. Under the 15-year agreement, Israel will send about 130 billion cubic meters of gas from the Leviathan field to Egypt. This is expected to improve the region’s energy supply and stability.
They first signed the agreement in August 2025, and people saw it as a big step for energy partnerships in the Middle East. The gas from Israel will back up Egypt’s energy needs and its plans to export LNG. It will also provide Israel with a steady income and cement its position as a major energy player in the region.
The plan is to deliver about 20 billion cubic meters of gas by 2026. After that, the amount will increase each year. New pipelines in Nitzana and upgrades to the Leviathan field have been approved to support the project.
Things got bumpy in November when Israel’s Energy Minister, Eli Cohen, said it was important to keep Israel safe and make sure Israelis got a fair price for the gas. Political issues, such as Egypt’s regional disagreement with Israel, and security concerns, also played a role in the delay. Cohen said the agreement secures Israel’s economy and helps keep the region stable.
The United States pushed to get the deal back on track, using diplomatic leverage before a visit from U.S. Energy Secretary Chris Wright. The U.S. government considered the deal important for energy security and the regional economy.
The timing is important for Egypt. In 2024, the country bought a record 981 million cubic feet of gas per day from Israel, making up almost 20% of its total use. Egypt’s own gas production has fallen since 2021, and the Zohr field, which supplies 40% of its gas, has been declining since 2019.
With the pipelines now operating, the deal is expected to progress smoothly. Both countries aim to ensure a reliable energy supply, support Egypt’s LNG exports, and maintain Israel’s position as a leading energy exporter. Experts say the agreement shows how energy cooperation can strengthen economies and bring stability to the region.
