Israel’s $35 billion natural gas deal with Egypt is expected to ease Egypt’s energy crisis and significantly reduce its reliance on costly liquefied natural gas imports, analysts say. Under the agreement, Israel will supply 130 billion cubic metres of gas to Egypt through 2040, mainly from the offshore Leviathan field.
Egypt, once a gas exporter, has become a net importer as output from ageing gasfields declines and power demand rises. Gas production is forecast to fall to 43 bcm this year, down from 49 bcm in 2024. Pipeline gas from Israel costs nearly half as much as LNG, helping Egypt lower import bills and stabilise power supplies. However, ongoing regional tensions pose potential risks to the deal’s continuity.
