Egyptian President Abdel Fattah El-Sisi is expecting Israeli Prime Minister Benjamin Netanyahu in Cairo for a ceremonial signing of a landmark economic deal worth approximately $35 billion, marking Netanyahu’s first visit to Egypt in 15 years.
At the center of this historic visit is a proposed natural gas export transaction positioning Israeli gas as a pillar of regional energy ties and future state revenue. The planned supply of an additional 4.6 trillion cubic feet of gas from Israel’s Leviathan field, in an operation that will run until 2040, was agreed in early August 2025 between Chevron, NewMed Energy and Ratio Energy on one hand and Blue Ocean Energy on the other, marking a significant increase in Egyptian import.
The deal, however, masks a complex political history. The Netanyahu government, citing deep-seated mistrust about military build-up of the Egyptian army in the Sinai Peninsula, initially instructed that the gas export agreement not move forward without the Prime Minister’s approval. Netanyahu had instructed Energy Minister Eli Cohen to re-examine the Leviathan deal in light of Egyptian violations of the peace treaty, according to reports from September 2025.
The United States lobbied in favor of the transaction and while Netanyahu came around to approve the project, Minister Cohen remained in opposition.
Chevron operates the Leviathan gas field off the coast of Israel, alongside NewMed Energy and Ratio Energy. Blue Ocean Energy, a Texas-based independent company, is the entity responsible for purchasing the natural gas from the consortium and distributing it within Egypt.
Pumping this significant volume of gas into the Egyptian economy would crucially mitigate the steep declines in the country’s gas production. The one-time giant Zohr gas field, operated by Italy’s ENI, has fallen roughly 40% because of technical issues, forcing rationing even as Cairo continues exporting liquefied gas to Europe. Israeli supplies routed through Egyptian LNG terminals have filled the gap.
Netanyahu’s aides are pitching the visit as a historic diplomatic milestone and a political win at home, after years of strained ties following the Gaza war and prior geopolitical tension. The Prime Minister wants to present this trip as proof that Israel can deepen peace with Arab neighbors even after the war, and as a showcase of his economic stewardship.
Source: africaoilgasreport.com