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ISRAEL: NewMed Energy signs historic $35bn gas deal with Egypt through 2040

The Israeli group NewMed Energy has signed a natural gas export contract worth $35bn with Egypt, covering 130bn cubic metres to be delivered by 2040.

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The Israeli gas group NewMed Energy has announced the conclusion of a major contract with Egypt for the supply of natural gas. This agreement, valued at $35bn (approximately EUR32.13bn), provides for the export of a total volume of 130bn cubic metres, with a supply period extended until December 31, 2040 or until the contracted volume has been fully delivered.

A new chapter in Israeli-Egyptian energy cooperation

The signing of this contract marks a significant intensification of energy cooperation between Israel and Egypt. According to NewMed Energy, this volume represents a notable increase compared to previous agreements and positions Egypt as one of the main clients for Israeli gas. The long-term supply is intended to meet the growing demand of the Egyptian market and support the stability of energy flows in the region.

The Leviathan field, located in the Eastern Mediterranean, is at the centre of this agreement. NewMed Energy holds more than 45% of the exploitation rights for this field, considered the main source of natural gas for Israeli exports. Since production began in 2019, Leviathan has already supplied Jordan, Egypt, and Israel’s domestic market.

Delays and infrastructure perspectives

A terrestrial gas pipeline project linking Israel and Egypt over 65 kilometres was approved in 2023 by Israeli authorities. However, construction of this infrastructure has been delayed, and its completion is now expected in 2029, according to information provided by NewMed Energy. This pipeline is intended to optimise deliveries to Egypt and strengthen the security of exports.

The first agreement between Egypt and the Leviathan consortium, signed in 2019, provided for the delivery of 60bn cubic metres of gas, or an average of 4.5bn cubic metres annually. The new contract thus doubles the committed volumes, reflecting the rapid development of commercial relations between the two countries.

A strategic field for the region

The Leviathan field remains at the heart of NewMed Energy’s expansion ambitions. The group aims for increased diversification of export markets and intends to make Israeli natural gas a key resource for regional energy integration. The company’s management stated that the Leviathan project could serve as a basis for further future agreements with countries in the Mediterranean basin.

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