Egypt has signed a landmark agreement with Israel to import natural gas from the Leviathan field, a deal worth about $35 billion through 2040 that cements Cairo’s position as a hub for East Mediterranean energy trade.
The agreement allows gas to flow via Egypt’s pipeline network to liquefaction plants in Idku and Damietta, where it can be re‑exported to Europe or used domestically.
Officials said Egypt will collect transit and liquefaction fees estimated between $5.3 and $8.85 billion over the life of the contract.
The first phase begins in 2026 with 20 billion cubic meters annually, expanding after field development and construction of the Nitzana–Sinai pipeline. The new price of $4.5–$5 per million British thermal units is about $1.5 lower than previous contracts.
Egyptian authorities said the deal reduces costly LNG imports, saves foreign currency, and strengthens the country’s leverage in regional energy diplomacy. With the only liquefaction plants in the East Mediterranean, Cairo remains the indispensable route for Israeli gas exports, reinforcing its strategic role in Europe’s energy security.