Egypt-Israel $35B Gas Deal Sparks Tension Over Disputed Palestine Land
Israel has announced the signing of a major $35 billion agreement to export natural gas to Egypt on August 7, 2025, describing it as “the largest in Israel’s history,” according to Minister of Energy in the Israeli government, Eli Cohen. Reportedly, the export agreement leverages the Leviathan gas field’s 600 billion cubic meters of reserves to supply 130 bcm of gas through 2040.
This deal, facilitated by the Leviathan field’s expansion (costing $2.4 billion), positions Israel as a regional energy powerhouse, challenging traditional Middle Eastern energy dynamics dominated by Gulf states, with potential to generate billions for Israel’s economy and reduce Egypt’s reliance on imported liquefied natural gas, per NewMed data.
Read also: Netanyahu’s Cabinet Approves Gaza City Takeover; Adopts 5 Principles For War’s End
NewMed Energy, a partner in the occupied Leviathan gas field, said the deal includes the sale of about 130 billion cubic metres of natural gas to Egypt until 2040, or until the total contracted amount is delivered.
In a post on social media on Thursday, Cohen said that signing the largest gas deal in history is an important development in terms of security, politics, and the economy.
עסקת הגז הגדולה בהיסטוריה שנחתמה היום, היא בשורה חשובה – ביטחונית, מדינית וכלכלית.
היא מבססת את מעמדנו כמעצמת אנרגיה אזורית ומובילה, ששכנותיה נשענות עליה וזקוקות לה.
בנוסף זוהי בשורה גדולה לכלכלה הישראלית, שתכניס מיליארדי דולרים לקופת המדינה, תייצר מקומות תעסוקה ותחזק את המשק.… pic.twitter.com/INN92eSM4E— אלי כהן | Eli Cohen (@elicoh1) August 7, 2025
He added that it strengthens Israel’s position as a leading regional energy power that neighbouring countries rely on and need. It is also great news for the economy, as billions of dollars will flow into the state treasury, new jobs will be created, and the economy will be supported.
Read also: India Backs Humanitarian Aid To Palestine And Two-State Solution
Israel’s public broadcasting authority reported that “this deal comes in addition to the previous export agreement signed in 2019, which covered 60 billion cubic metres, meaning that the export volume to Egypt will triple.”
Despite economic benefits, the agreement sparks geopolitical tension, with critics on X claiming the gas belongs to Palestinians, reflecting ongoing disputes over offshore resources in the Levantine Basin, a contention supported by historical claims but lacking conclusive international legal rulings from bodies like the UNCLOS tribunal.
