Israel Approves Historic $35 Billion Natural Gas Agreement with Egypt
Israel has formally signed off on what officials say is the largest natural gas transaction ever concluded by the country, a deal valued at NIS 112 billion, or roughly $35 billion. The approval was announced Wednesday by Prime Minister Bibi Netanyahu together with Energy and Infrastructure Minister Eli Cohen.
Speaking publicly after the decision, Cohen characterized the move as transformative for Israel’s economy and regional standing. “a historic moment for the State of Israel, both in the security-diplomatic sphere and the economic sphere,” he said. He noted that, “This is the largest export deal in the history of the country, totaling NIS 112 billion,” adding that “the deal establishes our status as a regional energy power and a leader that its neighbors rely upon.”
According to Cohen, the agreement was finalized only after a lengthy process that addressed both strategic and financial concerns. “The approval of the agreement comes after several months of intensive negotiations, and only after we had secured Israel’s security and economic interests,” he said. He also outlined the anticipated benefits, stating, “The state’s revenues from taxes and royalties thanks to the deal will stand at approximately NIS 58 billion, and the scope of direct infrastructure investments in the economy will exceed NIS 16 billion.” Those investments, he added, “will create jobs and strengthen the economy.”
Netanyahu, addressing the nation, underscored the magnitude of the agreement and its contribution to public finances. “Dear citizens of Israel, today I approved the largest gas deal in Israel’s history. The scope of the deal stands at NIS 112 billion. Out of this, NIS 58 billion will go to the state treasury,” he said.
The Prime Minister explained that the state’s income from the deal will increase gradually as development progresses. “Initially, in the first four years, we will receive about half a billion shekels for the state treasury,” he said, pointing out that during that time the participating companies will be making “massive” infrastructure investments, including expanding pipelines. “Afterward, it begins to rise,” Netanyahu continued, “and within a few years, it reaches NIS 6 billion every year for the state treasury. This money will strengthen education, health, infrastructure, security, and the future of coming generations.”
Netanyahu said the agreement involves Chevron alongside Israeli partners and includes gas exports to Egypt. He stressed that strategic considerations were carefully weighed before approval. “I approved the deal after ensuring our security interests and other vital interests, which I will not detail here in full,” he said.
Beyond the immediate financial impact, Netanyahu argued that the agreement enhances Israel’s broader regional role. “This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region,” he said, adding that it is expected to spur further exploration. “More gas will be found,” he said, emphasizing that “first and foremost, this deal obligates the companies to sell gas at a good price to you, the citizens of Israel.”
The Prime Minister also revisited earlier public debates surrounding offshore gas development. “There were those among us who fiercely opposed taking the gas out of the water,” he said. “They said we would destroy the Israeli economy.” He concluded, “Today, it is clear that extracting the gas from the depths of the sea has brought a massive blessing to the State of Israel.”
Describing the agreement as a continuation of earlier policy decisions, Netanyahu said, “The persistence of myself and then-Finance Minister Yuval Steinitz, our insistence on extracting the gas, has proven itself beyond all expectations. And I promise you, it will be the same with this deal.”
Netanyahu publicly thanked Cohen for his role in the process, saying, “You persisted and fought in very tedious and firm negotiations on our behalf,” and extended his appreciation to Cohen’s staff and other officials who took part in the talks.
Cohen, for his part, highlighted provisions aimed at protecting Israeli consumers. “This is the first export approval that guarantees priority for the local market,” he said, explaining that arrangements were put in place “that will improve the price of gas for the Israeli market.”
Calling natural gas “a strategic asset for the state,” Cohen addressed Netanyahu directly. “Prime Minister, you resolutely led the Gas Framework exactly a decade ago, and today we are reaping the fruits,” he said. “We will continue to work toward bringing in additional local and international companies to invest in Israel.”
Netanyahu concluded his remarks by tying the announcement to the Chanukah. “This evening is the fourth night of Chanukah, and on this day, we have brought an additional jar of oil to the people of Israel,” he said. “But this time, the flame will burn not just for eight days, but for decades to come. Happy Festival of Lights, citizens of Israel.”
Cohen closed by acknowledging senior officials and partners involved in finalizing the deal, including Energy Ministry Director General Yossi Dayan, Natural Resources Administration Director Chen Bar-Yosef, Gas Authority head Moshe Garazi, and representatives from the Finance Ministry who participated in the negotiations.
{Matzav.com}
