Israel Approves Major Gas Export Deal with Egypt
Egypt Security Sector Report
This week’s issue surveys key developments across the security sector, from arms imports and US military support contracts to Israel’s newly approved gas export deal, expanding energy infrastructure, and renewed great-power competition in Africa’s space domain. It also examines the regime’s deepening reliance on asset sales to manage the debt crisis, including the planned disposal of Ras Banas following Ras el-Hikma and Alam al-Rum, alongside fresh signs of militarization across civilian institutions, tightening controls over military and police academy admissions, and mounting evidence of punitive practices inside the prison system.
Israel Greenlights Egypt Gas Deal
Israeli PM Benjamin Netanyahu on 17 December announced his government’s approval of the largest natural gas deal in Israel’s history, a 112 billion shekel export agreement with Egypt, equivalent to approximately US$35 billion, signed earlier with US energy giant Chevron but only now greenlit by the cabinet.
The agreement had been awaiting political approval amid security and strategic deliberations. Egyptian officials had reportedly made its authorization a condition for Sisi’s participation in a planned trilateral summit with Netanyahu and Trump.
Netanyahu said the deal is expected to generate 58 billion shekels in direct state revenue, equivalent to approximately US$18 billion, with annual income projected to reach around 6 billion shekels, or approximately US$1.86 billion, in later years. The deal includes major infrastructure investments, particularly expanded pipeline capacity, and gives priority to domestic gas supply over exports.
Energy Minister Eli Cohen said the Leviathan gas field will be obligated to meet all local demand, with export volumes subject to reduction starting in 2032. Israeli officials framed the agreement as reinforcing Israel’s regional energy role and deepening strategic ties with Cairo. Egypt’s energy security is now effectively in Israel’s hands.
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