Historic $35 Billion Gas Export Deal Signed Between NewMed Energy and Egypt From Israel's Leviathan Reservoir

Landmark Natural Gas Export Agreement Between NewMed Energy and Egypt

NewMed Energy, in collaboration with its partners in the Leviathan project, has achieved a monumental milestone in Israel's energy sector by signing the largest export agreement in the country's history. The deal promises to export natural gas from the Leviathan reservoir to Egypt, encompassing an aggregate total of approximately 130 billion cubic meters (BCM), or 4.59 trillion cubic feet (TCF), with a remarkable financial valuation of around $35 billion expected by 2040.

This strategic agreement is poised to establish a robust framework for natural gas trade between Israel and Egypt, reinforcing Egypt's position as a vital hub for energy in the eastern Mediterranean. The export process is to be conducted in two defined stages: the first phase involves an immediate sale of about 20 BCM (0.7 TCF) starting in 2026, with the second phase, estimated at around 110 BCM (3.88 TCF), planned to commence once the Leviathan expansion project is finalized.

The Leviathan reservoir has held significant economic promise since it began producing natural gas in January 2020, following prior explorations that unveiled vast resources. To date, the reservoir has successfully exported approximately 60 BCM to Egypt, initiating a contract that has enriched regional energy collaborations.

Detailed Breakdown of the Deal

1. Stage One: The initial phase will begin in early 2026 following the completion of critical infrastructure projects that include:
- Connection of a third pipeline to the production platform, enhancing the gas volume to over 14 BCM (0.5 TCF) annually.
- Ongoing enhancements to the Ashdod-Ashkelon transmission pipeline which will bolster natural gas capacity by an additional 2 BCM between Ashkelon and el-‘Arīsh.

The implementation of this stage is expected to yield an additional 2 BCM per year from the total of 20 BCM intended for Egypt.

2. Stage Two: This phase will kick off post the completion of Leviathan's expansion project, dramatically increasing its annual output by approximately 30%. The construction of a new pipeline to Nitzana will further augment transport capacity for exports, ensuring a consistent supply of 110 BCM, which is anticipated to increase total sales to around 12 BCM (0.42 TCF) yearly.

The comprehensive export figures compiled under this agreement suggest a pricing structure primarily linked to the Brent oil barrel price, heralding substantial revenues projected at $35 billion for all involved parties.

With this significant agreement, NewMed Energy also reveals plans to enhance its production capabilities to possibly reach up to 23 BCM per annum in the coming years, ensuring sustainability in the energy market until at least 2064. The completion of this export deal marks a pivotal point in the natural gas industry and exemplifies the potential for further regional energy collaborations.

Yossi Abu, CEO of NewMed Energy, emphasized, “This is the most strategically important export deal to ever occur in the eastern Mediterranean, bolstering Egypt's role as the dominant hub in the region. The Leviathan reservoir's expansion has been a top priority, and this deal will lead to further regional export opportunities, validating the natural gas sector as a catalyst for collaboration.”

What Lies Ahead

NewMed Energy is scheduled to host a webinar session today at 12:00 PM (BST) to discuss this landmark deal further. The commitment to this export agreement demonstrates not only an economic benefit but a profound step towards energy cooperation within the region.

For additional insights into this historic deal, interested parties are encouraged to view NewMed's formal reports on their development plans, which outline the future of the Leviathan reservoir and its critical role in meeting both domestic and international energy demands. The webinar registration link can be found on their website for those wishing to participate.

As the natural gas market continues to evolve, this foundational agreement is anticipated to influence global energy trends positively and establish a cooperative model for resource-sharing among neighboring countries.