What's happened
Israeli Prime Minister Netanyahu announced the approval of the country's largest-ever gas export deal, worth $34.7 billion, with Chevron and Israeli partners. The deal will supply gas to Egypt, boosting Israel's regional energy status and generating significant revenue for the state. The approval follows delays and calls for transparency.
What's behind the headline?
Strategic and Regional Implications
- The deal significantly elevates Israel's position as a regional energy power, likely encouraging other countries to explore and develop Israeli gas resources.
- It aims to foster regional stability by repairing strained relations between Israel and Egypt, especially after the Gaza conflict.
- US involvement indicates a broader geopolitical strategy to promote peace and economic cooperation in the region.
- Domestic concerns about transparency and long-term reserves remain, with NGOs calling for more details on the deal's implications.
- The deal's financial benefits, including billions in revenue and taxes, will likely influence Israeli domestic policy and regional diplomacy.
- The approval process, delayed and criticized for lack of transparency, suggests underlying tensions between economic interests and governance.
- The deal sets a precedent for future Israeli energy exports, potentially impacting global energy markets.
- Overall, this move consolidates Israel's energy independence and regional influence, but also raises questions about resource management and regional politics.
What the papers say
The New Arab reports Netanyahu's announcement of the $34.7 billion deal with Chevron, emphasizing its significance for Israel's regional energy status and domestic revenue. The Independent highlights the deal's economic scale and regional stability aims, noting delays and US diplomatic efforts. The New York Times discusses the strategic timing and regional implications, while The Times of Israel and AP News detail the domestic approval process, revenue projections, and regional diplomacy efforts. All sources agree on the deal's importance but differ in focus—economic, political, or transparency concerns—illustrating the complex motivations behind this historic agreement.
How we got here
Israel discovered major natural gas fields off its Mediterranean coast in the early 2000s, leading to exports to Jordan and Egypt. The Leviathan field, with reserves of around 600 bcm, has been central to Israel's energy strategy. The recent deal with Egypt builds on previous agreements and aims to strengthen regional ties amid ongoing regional tensions and energy needs.
Go deeper
Common question
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What Are the Details of Israel's $35B Gas Deal with Egypt?
Israel's recent $35 billion natural gas export deal with Egypt marks a significant step in regional energy cooperation. This agreement, involving U.S. company Chevron, aims to boost Israel's energy security, strengthen diplomatic ties with Egypt, and influence regional stability. But what exactly does this deal entail, and how could it impact the broader Middle East? Below, we explore the key questions about this historic agreement and its implications.
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Benjamin Netanyahu is an Israeli politician serving as Prime Minister of Israel since 2009, and previously from 1996 to 1999. Netanyahu is also the Chairman of the Likud – National Liberal Movement.
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Chevron (often relating to horizontal V-shaped patterns) may refer to:
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Christopher Allen Wright (born January 15, 1965) is an American businessman and government official serving as the 17th United States secretary of energy since February 2025. Before leading the U.S. Department of Energy, Wright served as the CEO of Libert
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Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries.
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The Leviathan gas field is a large natural gas field in the Mediterranean Sea off the coast of Israel, 47 kilometres south-west of the Tamar gas field.
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Cairo is the capital of Egypt and the largest city in the Arab world. Its metropolitan area, with a population of over 20 million, is the largest in Africa, the Arab world, and the Middle East, and the 6th-largest in the world.
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Egypt, officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia by a land bridge formed by the Sinai Peninsula.