NewMed Energy Signs Historic $35 Billion Natural Gas Export Deal from Leviathan to Egypt
In a groundbreaking announcement, NewMed Energy, along with its project partners, has secured the largest natural gas export agreement in Israel's history, valued at a staggering $35 billion. This historic deal involves the sale of approximately 130 BCM (billion cubic meters) or 4.59 TCF (trillion cubic feet) of natural gas from the Leviathan reservoir to Egypt, establishing a new benchmark for the regional energy market. The agreement was finalized on August 7, 2025, symbolizing a pivotal achievement for NewMed Energy and the Israeli economy.
According to the terms of the agreement, the first phase will entail an initial shipment of about 20 BCM (0.7 TCF) of natural gas, expected to commence in the first half of 2026. Following this, the second phase will see an additional export of approximately 110 BCM (3.88 TCF) once the Leviathan expansion project is completed. This extensive agreement not only solidifies the role of NewMed Energy in the global gas market but also aims to secure Israel's place as a key player in regional energy supply until 2064.
The Leviathan gas field became operational in January 2020, marking the beginning of the gas exports to Egypt shortly thereafter. Currently, the field is under contract to supply Egypt with around 60 BCM, alongside spot sales that are being accounted for against the total contract amount. Since the commencement of gas production, approximately 23.5 BCM has already been exported to Egypt, reflecting the increasing demand and reliance on Israeli natural gas.
This new agreement is poised to replace the existing contract with Egypt, which is set to conclude once the full contracted volume of 60 BCM is reached, projected to occur in the early 2030s. The phased approach to this new deal is structured to ensure a seamless transition and continued supply of natural gas to Egypt, highlighting the strategic importance of this partnership.
The ambitious first phase aims to integrate advanced infrastructure into the existing network, comprising a third gas pipeline linking Leviathan to the production platform, anticipated to enhance the annual output to over 14 BCM (0.5 TCF). Furthermore, the ongoing construction of the Ashdod-Ashkelon pipeline, led by INGL, is expected to increase the natural gas transportation capacity significantly.
Once completed, these projects are projected to be operational in early 2026, thus facilitating the commencement of the first phase of the new agreement. In terms of financial returns, this monumental deal, which utilizes a pricing mechanism predominantly linked to the Brent crude oil prices, is expected to generate approximately $35 billion in revenue, marking a significant milestone in the Israeli energy export sector.
Yossi Abu, CEO of NewMed Energy, expressed that this agreement holds enormous strategic importance not just for Israel but for the entire Eastern Mediterranean region, reaffirming Egypt's position as a vital hub for gas exports. He stated, "Since its inception, Leviathan has brought considerable benefits both domestically and internationally, and the expansion of the reservoir has been a priority for NewMed for years. This deal allows for new regional export opportunities and underscores that natural gas and the energy sector as a whole can be a pillar for collaboration."
As part of the expansion project (Phase 1B of the development plan), plans are underway to increase production capacity to approximately 21 BCM annually, with potential future expansions hovering around 23 BCM. NewMed Energy has also recently applied for the necessary export permits related to this new agreement, emphasizing its commitment to enhancing gas output through the drilling of additional wells, adding subsea systems, and processing facility expansions. The Leviathan field is recognized as one of the largest gas reserves in the Mediterranean, housing an estimated 600 BCM (21.2 TCF) and is projected to sustain operations well into 2064.
This development not only exemplifies the changing dynamics of the energy market in the region but also signifies a hopeful future for collaborative ventures in infrastructure and energy innovation. NewMed Energy will host a webinar on this agreement, inviting stakeholders and interested parties to learn more about the implications and opportunities that it presents for gas exports from Israel to Egypt.
For additional information, you can access the official report on NewMed Energy’s website and join the forthcoming seminar to explore this groundbreaking deal on an interactive platform.
According to the terms of the agreement, the first phase will entail an initial shipment of about 20 BCM (0.7 TCF) of natural gas, expected to commence in the first half of 2026. Following this, the second phase will see an additional export of approximately 110 BCM (3.88 TCF) once the Leviathan expansion project is completed. This extensive agreement not only solidifies the role of NewMed Energy in the global gas market but also aims to secure Israel's place as a key player in regional energy supply until 2064.
The Leviathan gas field became operational in January 2020, marking the beginning of the gas exports to Egypt shortly thereafter. Currently, the field is under contract to supply Egypt with around 60 BCM, alongside spot sales that are being accounted for against the total contract amount. Since the commencement of gas production, approximately 23.5 BCM has already been exported to Egypt, reflecting the increasing demand and reliance on Israeli natural gas.
This new agreement is poised to replace the existing contract with Egypt, which is set to conclude once the full contracted volume of 60 BCM is reached, projected to occur in the early 2030s. The phased approach to this new deal is structured to ensure a seamless transition and continued supply of natural gas to Egypt, highlighting the strategic importance of this partnership.
The ambitious first phase aims to integrate advanced infrastructure into the existing network, comprising a third gas pipeline linking Leviathan to the production platform, anticipated to enhance the annual output to over 14 BCM (0.5 TCF). Furthermore, the ongoing construction of the Ashdod-Ashkelon pipeline, led by INGL, is expected to increase the natural gas transportation capacity significantly.
Once completed, these projects are projected to be operational in early 2026, thus facilitating the commencement of the first phase of the new agreement. In terms of financial returns, this monumental deal, which utilizes a pricing mechanism predominantly linked to the Brent crude oil prices, is expected to generate approximately $35 billion in revenue, marking a significant milestone in the Israeli energy export sector.
Yossi Abu, CEO of NewMed Energy, expressed that this agreement holds enormous strategic importance not just for Israel but for the entire Eastern Mediterranean region, reaffirming Egypt's position as a vital hub for gas exports. He stated, "Since its inception, Leviathan has brought considerable benefits both domestically and internationally, and the expansion of the reservoir has been a priority for NewMed for years. This deal allows for new regional export opportunities and underscores that natural gas and the energy sector as a whole can be a pillar for collaboration."
As part of the expansion project (Phase 1B of the development plan), plans are underway to increase production capacity to approximately 21 BCM annually, with potential future expansions hovering around 23 BCM. NewMed Energy has also recently applied for the necessary export permits related to this new agreement, emphasizing its commitment to enhancing gas output through the drilling of additional wells, adding subsea systems, and processing facility expansions. The Leviathan field is recognized as one of the largest gas reserves in the Mediterranean, housing an estimated 600 BCM (21.2 TCF) and is projected to sustain operations well into 2064.
This development not only exemplifies the changing dynamics of the energy market in the region but also signifies a hopeful future for collaborative ventures in infrastructure and energy innovation. NewMed Energy will host a webinar on this agreement, inviting stakeholders and interested parties to learn more about the implications and opportunities that it presents for gas exports from Israel to Egypt.
For additional information, you can access the official report on NewMed Energy’s website and join the forthcoming seminar to explore this groundbreaking deal on an interactive platform.
Topics Energy）
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