A multibillion-dollar natural gas export agreement between Israel and Egypt has received the green light from the Israeli government, paving the way for one of the largest energy deals in the region’s history.
The Leviathan project partners, NewMed Energy with a 45.3% working interest, Chevron as operator with 39.7%, and Ratio with 15%, have secured approval to export approximately 130 billion cubic meters of natural gas to Egypt. The agreement, signed in August 2025 with Egypt’s Blue Ocean Energy, is valued at approximately $35 billion.
The Petroleum Commissioner at the Ministry of Energy and Infrastructures granted approval on December 17, 2025, for the export of the additional quantities under the strategic agreement. NewMed Energy emphasized that the approval supports continued supply to the domestic market while advancing the process toward a final investment decision on the Leviathan expansion project, which is expected to increase production capacity in the coming years.
Yossi Abu, NewMed’s CEO, stated that the export approval enables the implementation of the strategic agreement with Egypt and supports energy security, regulatory stability, and regional cooperation. The Leviathan reservoir is considered the largest gas reservoir in the Mediterranean and serves as a key source of energy for Israel and neighboring countries.
With 22.9 trillion cubic feet of recoverable gas, Leviathan, discovered in December 2010, is one of the largest producing assets in the region. The field began producing natural gas on December 31, 2019, and has since become a cornerstone of gas supply in Israel, Egypt, and Jordan. Located in the Israeli exclusive economic zone approximately 130 kilometers off the shores of Haifa, production is facilitated by four subsea wells connected via a subsea manifold and two 120-kilometer pipelines to an offshore platform.
The implementation of this deal will proceed in stages, with Stage 2 set to commence once the Leviathan expansion project (Phase 1B of the development plan) is completed and a new transmission pipeline is built from Israel to Egypt via Nitzana to boost transportation capacity.
Source: offshore-energy.biz