$35 billion gas export deal good to roll

December 29, 2025, by Melisa Cavcic

A multibillion-dollar agreement for the export of natural gas from Israel to Egypt is locked and loaded, following the green light from the Israeli government.

Chevron-operated Leviathan gas asset; Source: NewMed Energy

NewMed Energy (45.3% working interest), Chevron (operator, 39.7%) and Ratio (15%) have received approval for their Leviathan project from the Israeli government to export approximately 130 billion cubic meters (bcm) of natural gas to Egypt, enabling the implementation of the agreement signed in August 2025 with Egypt’s Blue Ocean Energy (BOE) and valued at approximately $35 billion.

“The approval supports continued supply to the domestic market. It advances the process toward a final investment decision (FID) on the Leviathan expansion project, which is expected to increase production capacity in the coming years,” underlined NewMed.

The Petroleum Commissioner at the Ministry of Energy and Infrastructures gave its blessing on December 17, 2025, for export of the additional quantities under the export agreement to the buyer. The Leviathan reservoir is deemed to be the largest gas reservoir in the Mediterranean, with the produced gas said to serve as a key source of energy for the state of Israel and the countries of the region.

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Yossi Abu, NewMed’s CEO, commented: “The export approval enables the implementation of the strategic agreement with Egypt and supports energy security, regulatory stability, and regional cooperation.”

With 22.9 trillion cubic feet (tcf) of recoverable gas, Leviathan, which was discovered in December 2010, is perceived to be one of the largest producing assets in the region. After evaluation of the 330 square kilometer field, the Leviathan partners took a final investment decision in February 2017 on executing Phase 1A of the field’s development plan, with an annual production capacity of 12 bcm.

The production of natural gas began on December 31, 2019, and since is believed to have become a cornerstone of gas supply in Israel, Egypt and Jordan. The Leviathan field is situated in the Israeli EEZ, approximately 130 kilometers off the shores of Haifa.

The production is facilitated by four subsea wells that are connected via a subsea manifold and two 120-kilometer long pipelines to an offshore platform, where all processing of gas takes place. The gas is piped to shore into the Israeli national grid, through which it is distributed to clients in Israel, Egypt and Jordan.

Stage 2 is set to start once the Leviathan expansion project is completed and a new transmission pipeline is built from Israel to Egypt via Nitzana to boost transportation capacity, after completion of the Leviathan expansion project (Phase 1B of the development plan).