Israeli Prime Minister Benjamin Netanyahu has announced a major natural gas agreement with Egypt worth about $35 billion. He described it as the largest gas deal Israel has ever signed.
Speaking in a televised address, Netanyahu said the agreement is valued at $34.6 billion and will significantly boost Israel’s standing in the regional energy market.
“This deal greatly strengthens Israel’s status 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,” Netanyahu said.
US pressure behind the agreement
According to a report by CNN, Israel had delayed signing the agreement for several months. However, it eventually moved forward after strong pressure from Washington.
The deal comes as the United States pushes Israel and Egypt to improve ties and explore wider regional cooperation.
What the gas deal includes
Netanyahu said the revenue from the agreement would benefit the Israeli public in multiple ways. He said the money would “strengthen education, healthcare, infrastructure, security, and the future of the next generations”.
He added that the deal would also reinforce “Israel’s status as a regional energy power”.
In August, Israeli energy company NewMed Energy announced that it had signed a $35 billion agreement to supply natural gas to Egypt. Under the deal, the total volume of gas sent to Egypt will rise to 130 billion cubic metres, according to the company.
Energy sector calls it a historic move
NewMed Energy welcomed the agreement and called it a turning point for Israel’s gas industry.
“It was a historic day for the natural gas sector, one that guarantees continued investment in Israel and creates regulatory stability for years to come,” said NewMed CEO Yossi Abu in a statement released late Wednesday.
Summit talks in the background
The gas deal comes amid renewed US efforts to bring Israeli and Egyptian leaders together. US President Donald Trump has been pushing for a summit as part of his broader plan to promote peace in West Asia and expand the Abraham Accords.
Israel and Egypt signed a peace treaty in 1979, but their leaders have not held a public meeting in nearly ten years.
An Israeli source told CNN that announcing the gas agreement is part of Netanyahu’s strategy to prepare the ground for a possible summit with Egypt.
Netanyahu’s upcoming US visit
Netanyahu is expected to visit the United States later this month. He is scheduled to meet Trump at Mar-a-Lago.
Earlier, Netanyahu had planned to attend a peace summit in Sharm el-Sheikh in October alongside Trump. However, he withdrew at the last moment.
Although Egypt has played a key role in mediation during the Gaza war, relations between Netanyahu and Egyptian President Abdel Fattah el-Sisi have remained tense for years.