Jerusalem, 7 August, 2025 (TPS-IL) — In the largest export deal in Israel’s history, NewMed Energy and its Leviathan gas partners have signed a $35 billion agreement to supply approximately 130 billion cubic meters (BCM) of natural gas to Egypt by 2040. The agreement, finalized with Egypt’s Blue Ocean Energy, significantly upgrades a previous deal and is expected to bolster regional energy cooperation while securing Israel’s domestic gas needs for decades.
NewMed, which leads the Leviathan Partnership, described the deal as “the most significant move since the discovery of gas reserves in Israel.” The gas will continue flowing from the Leviathan reservoir, which began supplying Egypt in 2020 under an earlier agreement covering 60 BCM. So far, 23.5 BCM have been delivered, at an annual rate of around 4.5 BCM, including spot sales.
“This deal reflects a deep and mutual appreciation between Delek Group and our Egyptian partners, with whom we continue a long path of economic cooperation. For us, this is not only an extraordinary business achievement – it is a historic milestone that strengthens regional cooperation and promotes stability and hope in the Middle East,” said Yitzhak Tshuva, the controlling shareholder of the Delek Group. The Delek Group is an Israeli multinational holding company of which NewMed is a subsidiary.
This new deal, effectively an expansion of the original agreement, will be rolled out in two phases. Phase One will involve an additional 20 BCM, with deliveries expected to begin in 2026 following the completion of critical infrastructure upgrades. These include a third pipeline from the reservoir to the production platform—boosting capacity beyond 14 BCM per year—and completion of the Ashdod–Ashkelon transmission line, which will allow greater flow through the EMG pipeline to Egypt. Under this phase, 2 BCM per year will be exported.
Phase Two covers the sale of another 110 BCM, contingent on the Leviathan Expansion Project (known as Phase 1B) and the construction of a new pipeline via Nitzana. Once these are operational, Leviathan’s capacity will rise to 21 BCM annually — about 30% higher than its current output — allowing for up to 12 BCM per year to be exported under the agreement.
The pricing structure is pegged to Brent crude oil, and the deal is subject to the finalization of an export permit and final investment decision (FID) for the expansion. In February, Leviathan partners submitted an updated development plan aiming for a 21 BCM annual production rate, with the potential to reach 23 BCM.
Future infrastructure plans include additional drilling, expanded subsea systems, upgrades to the production platform, and the possible addition of a fourth pipeline. According to the latest resource reports, the Leviathan field still holds around 600 BCM, with production projected to continue through at least 2064. The Energy Ministry has forecast total export volumes from Leviathan could reach between 118 and 145 BCM beyond the current commitments.
“This is a historic day, when Newmed Energy changes the rules of the game of the regional energy economy, and proves once again that Leviathan, the largest natural gas field in the Mediterranean, is a tool for strategic reality change,” said Yossi Abu, CEO of NewMed Energy. He hailed the deal as “the largest and most significant in the history of our natural gas sector, and one of the largest in the history of the country.”
“This is a deal that strengthens stability in our region and paves the way for the expansion of Leviathan—a move that will allow us to increase the quantities of natural gas we produce and strengthen energy security in the Israeli economy.” He also acknowledged key figures behind the agreement, including Delek Group owner Yitzhak Tshuva and NewMed chairman Gabi Last, and suggested that similar deals with other countries may follow soon.
One of the world’s largest deep-water natural gas discoveries. Leviathan began pumping gas to Israel in 2019.
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