Israel Inks $35 Billion Leviathan Gas Deal with Egypt as BP, Eni Expand Mediterranean Exploration

Tel Aviv, Israel | August 7, 2025 - In a sweeping move reshaping regional energy architecture, NewMed Energy and partners have signed Israel’s largest-ever natural gas export agreement—a $35 billion deal to supply gas from the Leviathan reservoir to Egypt over the next two decades. The landmark transaction underscores Tel Aviv and Cairo’s growing energy interdependence and positions Egypt more firmly as the Eastern Mediterranean’s key liquefaction and transit hub.

The deal comes as EGAS (Egyptian Natural Gas Holding Company) cements its long-term exploration strategy through a new offshore agreement with BP and Eni in the Western Mediterranean. By targeting untapped acreage with proven reservoir potential, the pact aims to expand Egypt’s reserves base, maintain LNG export capacity, and elevate its position as a regional gas anchor.

For Africa, the developments in the Eastern Mediterranean offer a window into what a coordinated energy strategy can yield. With strategic partnerships, infrastructure leverage, and consistent licensing rounds, Egypt has emerged as a case study in maximising upstream potential while servicing export and domestic markets and this dual-track approach—combining upstream growth with midstream influence—offers valuable insights.

These deals are also signals to the wider global gas market. Amid tightening European supplies and growing Asian demand, the Eastern Mediterranean is rapidly becoming a stabilising node. For African producers, this momentum reinforces the imperative to accelerate exploration, secure offtake markets, and build strategic alliances before supply windows narrow.

As global energy systems pivot toward transition while maintaining fossil fuel baseloads, Cairo’s recent deals reassert its place on the energy map, with implications for producers, traders, and policymakers across the African continent.