Egypt’s decision to extend and expand a multi-billion-dollar natural gas import deal with Israel has stirred debate at home, with critics questioning who benefits most from what has been described as one of the world’s largest energy agreements.
Israeli firm NewMed Energy, a partner in the Leviathan gas field, said earlier this month that it had revised its supply agreement with Egypt, extending it until 2040 in a deal worth up to $35 billion. Since 2020, Leviathan has supplied Egypt with 23.5 billion cubic meters of gas, according to the company.
The announcement came as Israel’s war in Gaza continues, deepening scrutiny over the agreement. Egyptian officials, however, say the deal is driven by economics, not politics.
“Egypt’s economic agreements, whether with Israel or others, are based on national interests and returns,” a senior Egyptian official told Asharq al-Awsat.
He said the deal secures cheaper gas supplies compared with imports from elsewhere, and supports Egypt’s ambition to become a regional energy hub by re-exporting liquefied natural gas (LNG).
Prime Minister Mostafa Madbouly defended the arrangement last week, describing it as an extension of a 2019 deal, while the oil ministry issued a statement stressing it was “a modification of an existing agreement.”
“The deal ensures medium-term supplies through the Sinai pipeline without the costs of liquefaction and regasification,” said energy exert Maher Aziz. “It is not about who depends on whom, but about two neighbors securing each other’s needs despite political rifts.”
Israeli Energy Minister Eli Cohen hailed the deal during a visit to Leviathan alongside the US ambassador, saying it proved Israel’s role as a “strategic energy supplier” and underlined gas’s role in regional stability.
Egypt once exported gas to Israel via the Arish-Ashkelon pipeline until attacks in Sinai halted flows in 2012. Now the direction is reversed, with Israel piping gas to Egypt for liquefaction and re-export to Europe.
Analysts remain divided over who benefits most. Some, like US-based economist Mostafa Youssef, argue Israel gains global market access through Egypt’s LNG plants at a time when it faces political isolation over Gaza.
Others say both sides have little choice but to keep energy cooperation insulated from regional turmoil.
“Energy ties reflect mutual dependence,” said Washington-based scholar Ahmed Hassanein Abdel-Maqsoud.
“Egypt gets competitively priced gas, while Israel relies almost entirely on Egypt’s liquefaction facilities to reach European markets. That makes the deal indispensable for both,” he explained.
