Israel’s plan to export natural gas to Egypt is facing fresh obstacles, with Israeli Energy Minister Eli Cohen refusing to approve the deal ahead of implementation, even as the United States pushes for its ratification.
Hebrew-language media, including Yedioth Ahronoth, reported that US Energy Secretary Chris Wright canceled a planned visit to Israel after the latter declined to approve the $35 billion gas export agreement.
The Israeli Energy Ministry said “outstanding issues related to domestic pricing and national interests” remain unresolved, adding that “Israel will not proceed until a fair price for the domestic market is secured and its energy needs are fully met.”
In August, NewMed Energy, a partner in Israel’s Leviathan gas field, extended a supply agreement with Egypt through 2040.
The Israeli ministry noted that the Trump administration had “exerted significant pressure on Cohen and Prime Minister Benjamin Netanyahu to ratify the deal.”
Experts told Asharq Al-Awsat that the gas agreement is “threatened by obstacles set by the Netanyahu government, which is attempting to leverage the deal for political gains.”
They said Egypt has alternatives and is willing to honor the deal without responding to Israeli maneuvers.
Egypt’s Petroleum Ministry has secured gas supplies to guard against potential interruptions from Israel.
Ahmed Kandil, head of the Energy Studies Unit at Cairo’s Al-Ahram Center for Political and Strategic Studies, said tensions between the US and Israel are rising due to Netanyahu’s push to suspend the deal, while the US opposes politicizing the gas file.
Israel Hayom reported that US energy giant Chevron, which operates the field, is also pressing Israel to approve the agreement.
Kandil added that American firms have extensive operations in Egypt and Jordan, and Netanyahu’s political interference undermines their expansion goals. He noted Egypt is prepared to diversify its gas sources through agreements with other regional suppliers, including Qatar, Algeria, and Cyprus.
The deal has coincided with rising tensions after Netanyahu announced Israel would not extend the gas agreement, prompting Egyptian officials to warn of “consequences” if canceled.
Ahmed Fouad Anwar, member of the Egyptian Council for Foreign Affairs, said Israel “is using economic relations with Egypt to gain political leverage, but Egypt’s firm stance prioritizes national security over economic gains.”
He said Israel risks its relationship with Egypt by seeking concessions to advance its Gaza policy, which will not serve Netanyahu’s government, which lacks broad popular support.
Israel has occasionally cited Hezbollah threats and maintenance issues to delay deliveries, but Egypt has room to negotiate, especially as summer passed without gas shortages or load-shedding.
In June, Israeli Mediterranean gas production was halted for security reasons amid regional tensions, briefly cutting exports to Egypt before resuming two weeks later.
Egypt is investing $5.7 billion to drill 480 wells across the Western Desert, Suez Gulf, Mediterranean, and Nile Delta to strengthen energy stability and regional influence, and support Europe’s growing gas needs, according to the Petroleum Ministry.
Hossam Arafat, petroleum and mining professor at Cairo University, said the deal “remains threatened. Netanyahu is exploiting the preliminary nature of the agreement to pressure Egypt politically over Gaza. Ultimately, Israel risks losing, as export routes are limited and domestic consumption provides a buffer.”
He added that political factors, not economics, are driving Israel’s delays, despite benefiting from Egypt’s infrastructure that allows Israeli gas exports to Europe.
Kandil said the current threat to the deal is prompting Cairo to reassess economic cooperation with Israel, noting that Netanyahu’s government “sold the agreement without considering its legal obligations to Egypt.”
