Israel and Egypt sign historic $15 billion natural gas deal

An aeriel view of the Israeli gas rig 'Tamar' situated about 80 km off the Israeli northern coast. (Photo by Albatross Aerial photography/Nobel Energy/FLASH90)

Israel and Egypt on Monday signed a historic natural gas deal worth $15 billion.

Israel will supply Egypt with natural gas from its Tamar and Leviathan gas fields, the deal set for a decade. The deal was signed between Delek Drilling and Noble Energy with Egypt’s Dolphin Energy. Both companies will provide Egypt with 7 billion cubic meters of gas annually, the deal set at 64 billion cubic meters of gas in total.

Prime Minister Netanyahu welcomed the historic deal that will not only improve Israeli-Egyptian relations, but significantly boost Israel’s economy as Israel becomes a major natural gas exporter globally.

He stated Monday afternoon, “I welcome the historic agreement that was announced on the export of Israeli gas to Egypt. This will put billions into the state treasury to benefit the education, health and social welfare of Israel’s citizens. Many people did not believe in the gas outline. We led it knowing that it would strengthen our security, economy and regional relations, but – above all – that it would strengthen Israel’s citizens. This is a joyous day.”

Israel’s gas consortium signed a historic agreement to provide Jordan with over $10 billion in natural gas in 2016, its first major energy export deal. The agreement will provide Jordan with 1.6 trillion cubic feet of gas, the deal set for 15 years and will include gas deliveries from Israel’s Leviathan gas field as early as 2019.

A previous deal was made with Jordan in 2014 with Noble Energy for gas exports from Israel’s Tamar gas field.

In mid-2017, Greece, Cyprus and Israel announced they would accelerate the development of the East Med pipeline for export of Israel’s gas fields to Europe. The creation of the gas pipeline will not only benefit Israel’s economy and diplomatic and trade relations with European states, but also spearhead Israel’s entrance into becoming the world’s largest natural gas exporter.

This article originally appeared on Behold Israel, February 19, 2018, and reposted with permission.