CAIRO, Dec 19 – Egypt said on Thursday that a major natural gas supply agreement with Israel is a strictly commercial transaction with no political dimensions, adding that the deal was concluded by private energy companies operating under market rules.
The statement followed Israel’s approval on Wednesday of an export agreement signed in August by Chevron and its partners, NewMed and Ratio, to supply up to $35 billion worth of gas to Egypt from the Leviathan natural gas field.
The agreement comes at a sensitive time in the region, following Hamas’ deadly attack on Israel on October 7, 2023, and Israel’s subsequent war in Gaza, which has resulted in tens of thousands of deaths.
Egypt’s State Information Service said the country’s position on the Palestinian cause remains unchanged. Diaa Rashwan, head of the agency, said Egypt continues to support the legitimate rights of the Palestinian people, rejects forced displacement, and remains committed to a two state solution.
Israeli Prime Minister Benjamin Netanyahu described the agreement as the largest gas deal in Israel’s history, saying it would help strengthen regional stability.
Under the terms of the deal, the Leviathan field, which holds an estimated 600 billion cubic metres of gas reserves, will supply about 130 billion cubic metres of gas to Egypt through 2040, or until the full contract value is delivered, according to NewMed.
Egypt’s domestic gas production began declining in 2022, undermining its ambition to become a regional energy hub. As a result, the country has increasingly relied on imports from Israel to cover supply shortfalls.
