NewMed Energy Management Ltd., the operator of Israel’s massive Leviathan gas field, announced a landmark $35 billion deal on Thursday to expand natural gas exports to Egypt. The revised agreement with Blue Ocean Energy increases contracted volumes by an additional 130 billion cubic meters (BCM), marking one of the region’s largest energy export deals to date.
Under the amended terms, daily gas exports could rise from the current 450 million standard cubic feet (MMSCF) to as much as 1,250 MMSCF per day by 2029. This ramp-up, however, is contingent upon major infrastructure developments — including the completion of the Ashdod-Ashkelon offshore pipeline segment and the Nitzana onshore pipeline connection.
The deal’s revenue estimate of $35 billion is based on oil-indexed pricing mechanisms, full consumption assumptions, and take-or-pay guarantees, providing long-term cash flow visibility and reducing counterparty risk.
Industry observers see the agreement as a significant endorsement of investor confidence in the Leviathan expansion project, even as it navigates regulatory hurdles and project execution timelines. The deal also enhances regional energy cooperation and positions Israel as a key gas supplier to energy-hungry markets in the eastern Mediterranean.
Pending regulatory approvals, the agreement is expected to help ensure long-term energy security for Egypt and increase the utilization of Israel’s export capacity — further solidifying Leviathan’s strategic importance in the region’s energy map.
