Israel’s largest natural gas consortium has signed a major deal to supply $35 billion worth of fuel to Egypt over the next 14 years, underscoring Cairo’s growing reliance on imported energy amid dwindling domestic output. The agreement marks one of the region’s biggest long-term energy partnerships to date.
As reported by Bloomberg, the Leviathan gas project will deliver a total of 130 billion cubic meters (bcm) of natural gas to Egypt, with the first shipments — amounting to 20 bcm — starting in the first half of 2026. The remaining 110 bcm will be supplied after the project undergoes a major expansion, according to a statement by NewMed Energy LP, a key partner in the Leviathan venture.
The buyer, Blue Ocean Energy, will receive the gas over a 14-year period, extending Egypt’s existing import ties with Israel. Leviathan has already been exporting to Egypt under a previous contract totaling about 60 bcm since its operations began more than five years ago.
The deal comes at a critical time for Egypt, which has shifted from being a natural gas exporter to a net importer due to rising domestic demand and declining production from its own fields. The country has been aggressively pursuing new liquefied natural gas (LNG) deals to meet internal energy needs and retain a foothold in the global energy market.
“Egypt desperately needs more gas,” Bloomberg noted, citing the country’s growing energy shortfall that has already impacted local industries, including fertilizer manufacturing. The urgency was heightened in June when Israeli gas flows to Egypt were briefly suspended due to regional tensions — following Israeli strikes on Iran and Tehran’s retaliation — prompting Cairo to cut off gas supplies to several domestic sectors.
The Leviathan project, located off Israel’s Mediterranean coast, is one of the region’s most prolific gas fields. The expanded supply agreement signals long-term cooperation between the two nations in the energy sector and solidifies Egypt’s position as a central hub for regional gas distribution and re-export.
Meanwhile, Egypt’s strategic LNG ambitions continue to drive competition for global fuel deals. According to Bloomberg, the country is planning more LNG agreements as it works to ensure long-term energy security and economic stability.
