Egypt claims that the gas agreement with Israel is “strictly commercial”
Egypt declared on Thursday that a natural gas agreement with Israel was “strictly commercial” and devoid of political overtones. It further stated that private energy companies had reached the agreement in accordance with market regulations without direct government involvement.
An August export agreement between Chevron and its partners, NewMed and Ratio, to provide Egypt with up to $35 billion worth of gas from the Leviathan natural gas field was approved by Israel on Wednesday.
Following the fatal attack on Israel by the Palestinian group Hamas on October 7, 2023, and Israel’s ensuing war on the Palestinian enclave of Gaza, which has resulted in tens of thousands of deaths, tensions in the region have increased.
The head of Egypt’s State Information Service, Diaa Rashwan, said in a statement that Egypt’s stance on the Palestinian cause is “firm and unwavering,” supporting the Palestinian people’s legitimate rights, opposing forcible displacement, and upholding a two-state solution.
Benjamin Netanyahu, the prime minister of Israel, said Wednesday that the agreement would help strengthen regional stability and called it the biggest gas deal in Israel’s history.
According to a statement from NewMed, Leviathan, which has reserves of over 600 billion cubic meters, will sell Egypt roughly 130 billion cubic meters of gas through 2040 or until all contract values are satisfied.
Egypt had to give up its plans to become a regional supply hub after its gas production started to decline in 2022. To make up the difference, it has increasingly looked to Israel.
