The Israeli Energy Ministry refused to approve the $35-billion deal earlier this year, but reportedly faced heavy pressure from Washington
News Desk - The Cradle
Netanyahu and Israeli Energy Minister Eli Cohen announced the deal in a video statement, saying $18 billion from the $34.7 billion deal will go into Israel’s public coffers.
The Israeli premier said that in the first four years, $155 million will go to the state yearly, adding that this was expected to rise to $1.9 billion by 2033.
“The agreement is with the American company Chevron, with Israeli partners who will supply gas to Egypt. This money will strengthen education, health, infrastructure, security, the future of the coming generations,” he went on to say, stressing that he only greenlit the deal after ensuring it met Israel’s “vital” needs.
“The deal greatly strengthens Israel’s position as a regional energy superpower, and contributes to regional stability … We have brought another jug of oil to the nation of Israel.”
He also noted that companies will have to sell gas to Israel “at a good price.”
Cohen said in the video statement that this was a “historic moment for Israel” and the largest export deal “in Israel’s history.”
“This is a historic day for the natural gas sector, one that guarantees continued investment in Israel and creates regulatory stability for years to come,” said Yossi Abu, CEO of Israeli energy firm NewMed Energy.
The Egyptian government has not yet commented on the announcement of the deal.
NewMed Energy had announced earlier this year the signing of the $35-billion agreement to provide Egypt with gas. Yet the Israeli Energy Ministry initially rejected it, citing a lack of assurances that the Israeli market would receive good prices.
Washington reportedly pressured Cohen and Netanyahu into the deal.
“Israel had delayed the official approval of the deal for months, ultimately folding under pressure from the Trump administration,” sources told CNN.
US Energy Secretary Chris Wright canceled a trip to Israel in October after Cohen refused to approve the deal.
Axios reported this month that Washington aims to use the deal to push closer ties between Cairo and Tel Aviv.
The report added that US President Donald Trump was hoping to arrange a meeting between Netanyahu and Egyptian President Abdel Fattah el-Sisi.
Prior to the deal, Israel’s Finance Ministry warned Tel Aviv could face an energy shortage in the next 25 years.
Israeli gas currently makes up about 15 to 20 percent of Egypt’s energy consumption, according to data from the Joint Organizations Data Initiative.
Since the 1979 Egypt–Israel peace treaty, the relationship between Tel Aviv and Cairo has been described as a ‘Cold Peace,’ being stable and functional at the governmental level.
However, the majority of the Egyptian population remains opposed to normalization with Israel on the basis of its occupation of Palestine and systemic oppression and genocide of the Palestinian people.
Cairo has been a key player and major broker in Gaza ceasefire negotiations, alongside Qatar. Despite close coordination, Israel–Egypt ties remain relatively strained.
The last meeting between Netanyahu and Sisi took place in 2018.
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