Egypt's Gas Import Deal with Israel: "Agreement Dates Back to 2019"

Prime Minister Mostafa Madbouly addressed public debate surrounding the extension of Egypt’s natural gas import agreement with Israeli energy company NewMed, asserting that the deal was originally signed in 2019, well before the recent escalation in regional tensions.

Speaking during a press conference on Wednesday, Madbouly responded to concerns that the agreement may conflict with Egypt’s political positions, particularly regarding the situation in Palestine.

“There’s been talk suggesting that this agreement could affect Egypt’s political stances,” Madbouly said. “But I want to clarify: this agreement was signed in 2019. The developments in Palestine have been ongoing for the past two years. Egypt’s position has always been, and remains, consistent and unwavering.”

Madbouly emphasized that Egypt’s foreign policy is rooted in principle, and that economic agreements do not dictate or influence the country’s political stance. He added that Egypt’s balanced approach in international diplomacy has played a critical role in regional stability.

“If not for Egypt’s firm and steady positions, one can only imagine how much worse the situation could be,” he stated.

Egypt has officially amended its natural gas import agreement with NewMed Energy, significantly expanding both the volume and duration of gas imports from Israel’s Leviathan field, in a deal expected to generate $35 billion in revenues, according to a statement from NewMed.

The revised deal increases the total contracted volume by 130 billion cubic meters (bcm) and extends the supply period through to 2040, reinforcing Egypt’s role as a regional energy hub and meeting its growing domestic demand for natural gas.

According to the NewMed Energy disclosure to the Tel Aviv Stock Exchange, the gas supply boost will be implemented in two phases:

Phase one, which takes effect immediately, increases the current supply from 450 million cubic feet per day (mmcfd) to 650 mmcfd, translating to an additional 20 bcm.

Phase two involves an additional 110 bcm, contingent on future investments to expand production at the Leviathan gas field, as well as the signing of a new transportation agreement to deliver gas via the Nitzana pipeline. This would raise daily deliveries to between 1.15 and 1.25 billion cubic feet.

Strategic Partnership and Field Ownership

The Leviathan gas field is operated by a consortium that includes: NewMed Energy – 45.34%, Chevron (U.S.) – 39.66%, Ratio Energies – 15%.

The Egyptian importer is Blue Ocean Energy, a company responsible for receiving the gas under the new contractual framework.