Historic $35 Billion Gas Export Deal Signed

In a landmark agreement, NewMed Energy Management Ltd., a key stakeholder in Israel’s Leviathan gas field, has finalized a $35 billion deal to significantly increase natural gas exports to Egypt. This amended pact with Blue Ocean Energy promises to enhance supply volumes by an impressive 130 billion cubic meters (BCM), contingent upon the completion of necessary infrastructure upgrades and securing regulatory green lights.

Boosting Daily Export Capacities

The deal outlines a ambitious plan to ramp up daily gas exports from 450 to 1,250 million cubic feet (MMSCF) by the year 2029. Achieving this goal hinges on the successful execution of critical projects, including the Ashdod-Ashkelon offshore section and the Nitzana pipeline. Financial projections for this venture are grounded in comprehensive consumption estimates, formulas linked to oil prices, and robust take-or-pay guarantees.

A Leap Towards Energy Security

This agreement not only underscores a long-term commitment to ensuring supply security but also reflects growing investor confidence in the expansion of the Leviathan gas field, despite the hurdles of pending approvals and infrastructure development challenges.