Israel’s energy company NewMed has announced a major supply agreement worth up to US$35bn for the export of natural gas from the Leviathan field to Egypt. Under the terms of the deal, the Leviathan field, located offshore in the Mediterranean and estimated to hold around 600 bcm of reserves, will supply up to 130 bcm of gas to Egypt through 2040, or until the full contracted volume has been delivered.
In the first phase of the agreement, 20 bcm of gas will be supplied starting in early 2026, following the connection of additional pipelines. The remaining 110 bcm will be exported in a second phase, which will begin once the Leviathan expansion project is completed and a new transmission pipeline linking Israel to Egypt via Nitzana is built.
The Leviathan reservoir began supplying Egypt shortly after production commenced in 2020, under an initial deal signed in 2019 for 4.7 bcm/year, which is expected to be fully delivered by the early 2030s. The field is jointly owned by NewMed Energy, which holds a 45.34% stake, Chevron Mediterranean with 39.66%, and Israel’s Ratio Oil Exploration with 15%.
Egypt’s domestic gas production has declined sharply since peaking at 71 bcm in 2021, falling to 45 bcm in 2024—an average annual decrease of 14%. This decline is largely attributed to reduced output from the country’s main gas field, Zohr. As a result, Egypt became a net gas importer in 2023, with imports doubling to 13 bcm in 2024.