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Israel's Leviathan Signs $35 Billion Natural Gas Supply Deal with Egypt

File photo of the Israeli Leviathan field (Reuters)
File photo of the Israeli Leviathan field (Reuters)
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Israel's Leviathan Signs $35 Billion Natural Gas Supply Deal with Egypt

File photo of the Israeli Leviathan field (Reuters)
File photo of the Israeli Leviathan field (Reuters)

Israel's Leviathan natural gas field has signed the largest export agreement in the country's history, worth up to $35 billion to supply gas to Egypt, NewMed, one of the partners in the field, said on Thursday.
Leviathan, off Israel's Mediterranean coast with reserves of some 600 billion cubic meters, will sell about 130 bcm of gas to Egypt through 2040, or until all of the contract quantities are fulfilled, Reuters said.
The Leviathan reservoir began supplying Egypt shortly after production began in 2020. It signed an initial deal in 2019 for 60 bcm - or 4.5 bcm a year - that is expected to be fully supplied by the early 2030s.
Leviathan, the largest natural gas field in the Mediterranean, has already supplied 23.5 bcm of gas to Egypt since 2020, NewMed said.
"This is the most strategically important export deal to ever occur in the eastern Mediterranean, and strengthens Egypt’s position as the most significant hub in the region," NewMed CEO Yossi Abu said.
"This deal, made possible by our strong regional partnerships, will unlock further regional export opportunities, once again proving that natural gas and the wider energy industry can be an anchor for collaboration." Egypt, the most populous Arab country, has endured rolling blackouts over the last two years as government finances are under strain and natural gas supply fell short of demand.
It abandoned plans to become a hub supplying Europe and instead became a net importer of gas, signing over recent months agreements with energy firms and trading houses to buy 150-to-160 cargoes of liquefied natural gas. During a 12-day war between Israel and Iran in June, exports from Leviathan were halted for security reasons.
Under Thursday's deal, Leviathan in a first stage will supply Egypt with 20 bcm of gas starting in early 2026 after the connection of additional pipelines.
It will export the remaining 110 bcm in a second phase that will begin after completion of the Leviathan expansion project and the construction of a new transmission pipeline from Israel to Egypt via Nitzana in Israel, NewMed said.
Leviathan's expansion, it said, should allow for production and supplies within Israel and to its neighbors through 2064.

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Business

Saudi Integration of Energy, Industry, and Mining Aims to Maximize National Wealth

Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)
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Saudi Integration of Energy, Industry, and Mining Aims to Maximize National Wealth

Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)

The appointment of Prince Abdulaziz bin Salman as Saudi Arabia’s minister of industry and mineral resources, while retaining the energy portfolio, reflects a strategic push to strengthen integration among three of the Kingdom’s most important economic sectors. Analysts say placing energy, industry, and mining under a single ministry could accelerate policy coordination, strengthen domestic value chains, and advance the goals of Vision 2030 by diversifying the economy and maximizing the value of national resources.

The move stems from the close interdependence of the three sectors, which form an integrated chain - from energy production and mineral extraction to industrial manufacturing that transforms natural resources into higher-value products. Greater coordination is expected to enhance Saudi Arabia’s competitiveness, improve the efficiency of resource investment, and support a more diversified and sustainable industrial base.

Experts told Asharq Al-Awsat that the restructuring marks a new phase in implementing national strategies. They noted that the industrial sector has undergone major transformation since the Ministry of Industry and Mineral Resources was established as an independent entity and the National Industrial Strategy was launched. Bringing the Kingdom’s key economic portfolios together, they said, will better align policies and reinforce value chains in line with Vision 2030.

Economic diversification

said Saudi Arabia’s economic transformation since the launch of Vision 2030 has been guided by successive strategies culminating in the broader objective of economic diversification and increasing the contribution of key sectors to GDP.

According to Al-Buainain, the initial phases focused on building the legislative framework, developing a roadmap to achieve strategic goals, and moving into implementation, which has already delivered several targets ahead of schedule.

He credited former Minister of Industry and Mineral Resources Bandar Alkhorayef with leading major legislative, regulatory, and executive reforms, saying he left the ministry “at the peak of its performance” after achieving its objectives.

Integrated value chains

Al-Buainain said integrating the three portfolios is expected to accelerate implementation of the National Industrial and Mining Strategy, particularly in the mining sector, which has significant potential to expand its contribution to the economy. He added that the sector requires bold decisions to accelerate progress toward Vision 2030, especially its economic diversification objectives.

He also stressed the importance of integrating economic value chains under unified decision-making. Linking the mining and energy portfolios, he said, would strengthen Saudi Arabia’s hand in attracting foreign investment by enabling it to combine highly sought-after investment opportunities with less sought-after ones, creating deal structures that maximize benefits for the Kingdom.

Economic analyst Ahmed Al-Shehri said the appointment carries significant economic implications. Energy is the primary input for industry, mining provides the raw materials, and manufacturing converts them into value-added products, he said. Bringing all three sectors under one umbrella would therefore facilitate integrated planning instead of managing each independently.

Al-Shehri added that the move would also boost local value creation by shifting policy away from exporting raw materials toward developing advanced domestic industries, increasing economic returns and creating high-skilled jobs.

He said unified policymaking would improve investment efficiency by reducing complexity and providing greater clarity for investors. Ultimately, he argued, integrating energy, industry, and mining will accelerate economic diversification by supporting Saudi Arabia’s transition from a resource-exporting economy to one driven by manufacturing and industrial production.

 

 

 

Business

Gold Falls Over 1% as Oil Rises and Strait of Hormuz Fears Reignite

An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
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Gold Falls Over 1% as Oil Rises and Strait of Hormuz Fears Reignite

An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)

Gold prices slid more than 1% on Monday as fears of a closure of the Strait of Hormuz drove oil prices sharply higher, reviving expectations of elevated interest rates to combat inflationary pressures from escalating hostilities in the Middle East.

Spot gold dropped 1.5% to $4,060.49 per ounce by 0735 GMT. US gold futures for August delivery were down 1% at $4,069.50, Reuters reported.

US and Iranian forces have exchanged heavy ⁠missile and drone assaults, ⁠with Tehran targeting US facilities in states across the Gulf on Sunday and saying it had again closed the vital Strait of Hormuz.

Oil prices jumped about 4%, the dollar and US Treasury yields climbed, and share markets slipped in Asia.

"Any breakout of violence in the Gulf is accompanied by pressure on gold," said Nicholas Frappell, global head ⁠of institutional markets at ABC Refinery.

"The question is, if the Strait of Hormuz remains effectively or partially closed, does that lead to a deflationary effect, further down the road, that might actually be supportive for gold if you have demand destruction leading to lower economic activity," Frappell added.

Kevin Warsh's first semiannual testimony before Congress as Federal Reserve chair, along with a slate of key US economic data, including June CPI, PPI and retail sales, will be closely watched this week for fresh clues on the economy, inflation and the monetary policy outlook.

Remarks from Fed policymakers, ⁠including Vice ⁠Chair Michelle Bowman and Governor Christopher Waller, later in the day are also in focus as they could provide insights on how inflationary pressures are affecting the central bank's stance on interest rate hikes.

Traders are currently pricing in a 72% chance of a US Fed interest rate hike in September, up from about 63% last week, according to the CME FedWatch Tool.

COMEX gold speculators trimmed their net long positions by 1,964 contracts to 114,854 in the week to July 7, data released on Friday showed, following three consecutive weeks of increases.

Elsewhere, spot silver declined 2.5% to $58.35 per ounce, platinum shed 0.5% to $1,619.72, and palladium fell 1.5% to $1,257.82.

Business

S.Korea Flags Record 2027 Budget of Over $530 Billion as AI Chip Boom Lifts Revenues

South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP
South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP
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S.Korea Flags Record 2027 Budget of Over $530 Billion as AI Chip Boom Lifts Revenues

South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP
South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP

South Korea said on Monday it would draw up record budget spending of more than 800 trillion won ($530.97 billion) for fiscal 2027, supported by stronger tax revenues from the booming AI chip industry.

Budget Minister Park Hong-keun, speaking at a national fiscal strategy meeting, said the spending plan would be financed through higher tax receipts and expenditure cuts. The proposed budget compares with ⁠this year's 727.9 ⁠trillion won spending plan, excluding supplementary budgets.

The government said three "mega-projects" — investments in chips, AI data centers and physical AI — would receive top fiscal priority, adding that it would secure funding capacity through a major restructuring ⁠of existing spending programs, rather than relying solely on increased tax revenue.

President Lee Jae Myung said the government would use all available means to ensure that corporate investments proceed on schedule.

"Additional tax revenue coming at this time is a precious resource to be used at a golden time when global AI dominance will be determined," Lee said.

Budget Minister Park said ⁠the ⁠government would seek to restructure about 50 trillion won in spending, twice the level of the previous year, through a review of discretionary and mandatory expenditures and cuts to underperforming programs.

South Korea plans to launch a Future Response Fund as a strategic investment platform, setting aside tax revenue that exceeds long-term trends and investing it in four areas: youth, growth engines, regions and talent, the government said.