Israeli Prime Minister Benjamin Netanyahu recently announced a historic gas deal with Egypt valued at approximately $34.6 billion, or 112 billion shekels. This agreement marks a significant milestone as Netanyahu described it as “the largest gas deal in Israel’s history.” American energy company Chevron has signed a cooperation agreement to supply liquefied natural gas to Egypt. This project will solidify Israel’s position as an emerging regional energy superpower.
Netanyahu emphasized the broader implications of the deal, stating, “This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region. It encourages other companies to invest in gas exploration in Israel’s economic waters.” This claim is indicative of Israel’s goals to grow its energy business and draw foreign investment.
The deal was plagued by months of stall tactics. It wasn’t until the Trump administration exerted pressure that Israel felt at least the underlying encouragement to push ahead with such a deal. Prime Minister Netanyahu will visit the United States later this month. He’s got a one-on-one meeting scheduled with President Donald Trump at Mar-a-Lago. This visit would be perfectly timed with Trump’s efforts to continue doing just that. He wants to bring together Netanyahu and Egyptian President Abdel Fattah el-Sisi for a summit.
This proposed summit would be an encouraging step, aligning with Trump’s strategy to promote peaceful deals between countries in the region and expand on the Abraham Accords. For Netanyahu and el-Sisi, the past tense relations have often been particularly fraught. This comes as a shock, even despite the landmark peace agreement forged between Israel and Egypt in 1979. It would be both leaders’ first publicly disclosed meeting in nearly a decade.
In October, Netanyahu was briefly slated to attend a peace summit in Sharm el-Sheikh, Egypt, alongside Trump but withdrew unexpectedly. The Egyptian government has so far declined to make an official statement on the new gas deal announcement.
Our region continues to be intently focused on these developments. Israel-Egypt gas deal promises to transform energy landscape and provide new opportunities for diplomatic engagement.
