Following the huge $35 billion gas deal between Leviathan Partners and Egypt, and preparations for approval of the Nitzana pipeline in Israel, which will allow for increased exports, Egypt has approved the construction of the pipeline from its side, at an investment of $400 million, Saudi London-based newspaper Asharq Business has reported.
Egypt is a particularly large gas consumer, and despite having significant gas reserves of its own, it is struggling to meet its energy needs. Gas from Israel is essential to its economy, and an alternative to the even more expensive liquefied natural gas (LNG). For Israeli gas companies, especially those that control the export-oriented Leviathan field, this is a prime business opportunity, as Egypt is willing to pay much higher prices for the exported gas compared to the relatively low price of gas sold to the Israeli market. US energy major Chevron is the operator of Leviathan, Israel’s NewMed Energy is the largest shareholder, and Israeli company Ratio is another partner.
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As part of the Egyptian gas deal, the Levaithan partners have committed to significantly increase gas production from the field and expand the export infrastructure to Egypt. The main part of the infrastructure is the Nitzana pipeline, which will increase the amount of gas that can be exported to Egypt by 6 BCM per year, and will be built with financing by the exporters themselves. Disputes between the exporters have been overcome and signing of the agreement to build the 65 kilometer pipeline in Israel should be approved in two weeks. Gas is expected to flow in the pipeline by 2028.
Asharq Business reports, “Egypt, which has transitioned from a net exporter to a net importer of liquefied natural gas, is interested in becoming a regional energy hub by importing gas from countries in the region, liquefying it in Egypt, and then exporting the liquefied gas to the world market. However, this plan is currently on hold, while Egypt is turning to importing gas from Israel and Cyprus to meet domestic demand.” The newspaper adds, “In 2024, Egypt consumed 60 BCM while its production was only 47.5 BCM. In this regard, Egyptian Prime Minister Mostafa Madbouly announced that his country is expected to resume exports only in 2027.”
Published by Globes, Israel business news – en.globes.co.il – on August 31, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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