Egypt says Israel gas deal is purely commercial, not political

Egypt said on Thursday that its natural gas agreement with Israel is a purely commercial transaction with no political implications, stressing that the deal was reached by private energy companies operating under market conditions, without direct government involvement.

Israel on Wednesday approved an export agreement signed in August between Chevron and its partners, NewMed and Ratio, to supply up to $35 billion worth of natural gas from the Leviathan field to Egypt, Reuters reported.

Under the provisions of the agreement, Israel is projected to sell around 130 billion cubic meters of natural gas to Egypt over 15 years.

The announcement comes against the backdrop of heightened regional tensions following Hamas’ October 7, 2023, attack on Israel and the subsequent war in Gaza.

Egypt reiterated that its stance on the Palestinian issue remains unchanged. Diaa Rashwan, head of Egypt’s State Information Service, said the country continues to support the legitimate rights of the Palestinian people, opposes forced displacement, and remains committed to a two-state solution.

Israeli Prime Minister Benjamin Netanyahu described the agreement as the largest gas deal in Israel’s history, saying it would contribute to regional stability.

Egypt’s domestic gas output has been declining since 2022, undermining its earlier ambitions to become a regional energy hub and increasing its reliance on Israeli gas to bridge supply gaps.