Israel is expected to approve its $35 billion gas export with Egypt, worth an estimated $35 billion, amid pressure from the Trump administration. Under the deal, Israel will export 130 billion cubic meters of natural gas from the Leviathan gas field to Egypt with partners Chevron Corp. (NYSE:CVX), NewMed Energy (OTCPK:DKDRF)(TASE: NWMD) and Ratio Petroleum Energy (TASE: RTPT) guaranteeing a set price for the domestic economy. Previously, Egyptian Prime Minister Mostafa Madbouly announced that the supply agreement was extended until 2040. However, relations between the two countries soured after the Israeli military ordered residents of Gaza City to evacuate in September.
Last year, Egypt imported a record 981 million cubic feet per day of natural gas from Israel, good for 18.2% year-over-year increase. Egypt imports up to 20% of its gas from Israel. Over the past couple of years, the African country has seen its ambitions to become a regional natural gas supply and LNG export hub go up in flames, with a series of setbacks turning the country from a net exporter of the vital commodity to an importer. Egypt’s natural gas production has experienced a significant and rapid decline in recent years, particularly since its peak in 2021 at around 6.6 bcf/d. Data from early 2025 indicated an eight-year low of below 5 billion cubic feet per day (bcf/d).
The main reason for the decline is the natural depletion of existing gas fields, including the massive Zohr field, which accounts for about 40% of Egypt’s total gas production. Production at Zohr has dropped by about a third since 2019. Lack of New Discoveries and Investment have also taken a toll, with few significant new gas fields discovered since Zohr in 2015. Further, insufficient investment in exploration and development, partly due to the government’s arrears owed to foreign oil companies, has hampered efforts to offset the natural decline of existing wells.