JAKARTA - Israeli Prime Minister (PM) Benjamin Netanyahu has approved the largest energy deal in Israel's history worth 34.7 billion US dollars (USD) with its neighbor, Egypt.
The announcement of the deal was made in a video speech by Netanyahu with the Israeli Energy Minister, Eli Cohen, on Wednesday local time.
"This agreement with the American company Chevron, with an Israeli partner who will supply gas to Egypt," Netanyahu said, quoted by the Times of Israel, Thursday, December 18.
Netanyahu said the natural gas deal with Egypt is worth 34.7 billion US dollars, of which 18 billion US dollars will go into the Israeli state coffers.
In the first four years, he continued, around 500 million Israeli shekels (or about 155 million US dollars) will enter the Israeli state coffers, and it is estimated that it will increase to 6 billion Israeli shekels or 1.9 billion US dollars in 2033.
Energy Minister Eli Cohen, who was present during the speech, said it was the "largest export deal in the country's history."
Netanyahu said the money going into his country's coffers would be used to "strengthen education, health care, infrastructure, security, and the future of future generations," as well as strengthen "Israel's status as a regional energy power.
In a statement issued Wednesday evening, NewMed CEO Yossi Abu said it was a "historic day for the natural gas sector, which guarantees continued investment in Israel and creates regulatory stability for years to come."
However, the Israeli NGO, the Movement for Quality Government, which advocates for state transparency regarding policies, said they were "deeply concerned about how the largest gas deal in the country's history was approved."
The NGO called on the government to publish details of the agreement, and explain its implications for long-term reserves and consumer prices.
Previously, the Israeli company, NewMed Energy, announced in August 2025 that it had signed a deal worth 35 billion US dollars to supply natural gas to Egypt. However, the partnership was halted after Cohen initially refused to agree to it, citing a lack of assurance that the Israeli market would accept "a fair price."
Cohen also expressed concern that the exports could reduce Israel's natural gas reserves and endanger domestic energy security.
According to a report published by the company, the deal in August 2025, if approved, will increase the total volume of gas supplied to Egypt to 130 billion cubic meters.
The US reportedly played a key role in pressuring Cohen and Netanyahu to get Israel to agree to a deal to supply natural gas to Egypt. US Energy Secretary Chris Wright also canceled a six-day visit to Israel in October 2025 after Cohen refused to sign the deal.
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