Some NIS 58 billion will go directly to state coffers, he said, standing beside Energy and Infrastructure Minister Eli Cohen.
(photo credit: SCREENSHOT/GPO)
Israel has signed the largest gas deal in the country’s history with Egypt, an agreement worth NIS 112 billion ($34.7b.), Prime Minister Benjamin Netanyahu announced on Wednesday night. Some NIS 58b. ($18b.) raised by the deal will go directly to state coffers, he confirmed.
A source previously told The Jerusalem Post that discussions were underway for a $35b. agreement to export gas from Israel’s Leviathan reservoir to Egypt through 2040. The US administration has reportedly urged Israel to finalize the agreement, with the hope that it could facilitate a meeting between Netanyahu and Egyptian President Abdel Fattah al-Sisi under the auspices of US President Donald Trump.
The economic impact of Israel’s gas deal with Egypt
“We are working to extract gas from our territorial waters, and our economy is among the best in the world,” he said. “This deal greatly strengthens Israel’s position as a regional energy powerhouse, and it contributes to stability in our region.”
Netanyahu promised the deal would mean companies would be obliged “to sell gas at a good price to you, the citizens of Israel.”
“Today we’re on the fourth candle of Hanukkah, and on this day, we’ve brought another jug of oil to the nation of Israel. But this time, the flame will burn not just for eight days, but for decades to come,” the prime minister said, noting the significance of the religious holiday on which the announcement of the deal fell.
Chevron Mediterranean Limited (CML) welcomed the decision to issue a permit for the export of natural gas from the Leviathan reservoir to their customers in Egypt
Netanyahu’s meeting with Sisi
The long-anticipated gas deal was a necessary concession for a trilateral meeting between Egypt, the United States, and Israel that is expected to take place at the end of the month, Ynet reported on Tuesday evening. Sisi also reportedly demanded that Israel withdraw from the Philadelphi and Netzarim corridors, the news website reported, citing sources familiar with the matter.
“This is a huge opportunity for Israel,” a US official told Axios on Sunday. “Selling gas to Egypt will create interdependence, get the countries closer together, create a warmer peace, and prevent war.”
As reported by The Jerusalem Post