Israel's Netanyahu says approved $35 bn gas deal with Egypt

Jerusalem: Israeli Prime Minister Benjamin Netanyahu said he approved on Wednesday a major gas export deal with Egypt worth nearly $35 billion.

“Today, I approved the largest gas deal in Israel’s history. The deal is worth 112 billion shekels ($34.7 billion). Of this total, 58 billion shekels ($18 billion) will go to the state coffers,” Netanyahu said during a televised address.

“The agreement is with the American company Chevron, with Israeli partners who will supply gas to Egypt,” Netanyahu added.

Energy Minister Eli Cohen, who was present during the address, said it was the “largest export deal in the state’s history”.

Netanyahu said the money would “strengthen education, healthcare, infrastructure, security, and the future of the next generations”, as well as bolster “Israel’s status as a regional energy power”.

Israeli firm NewMed Energy announced in August the signing of a $35 billion deal to provide Egypt with natural gas.

The deal would increase the total volume of gas supplied to Egypt to 130 billion cubic metres, according to a report published by the firm.

In a statement issued late on Wednesday, NewMed CEO Yossi Abu said it was “a historic day for the natural gas sector, one that guarantees continued investment in Israel and creates regulatory stability for years to come”.

But Israeli NGO Movement for Quality Government, which advocates for greater state transparency, said it was “deeply concerned about how the largest gas deal in the country’s history was approved”.

It called on the government to make the details of the agreement public, and to explain its implications for long-term reserves and consumer prices.