Israel has paused its $35 billion natural gas export deal with Egypt, citing unresolved issues related to national security and pricing.
The announcement comes despite mounting pressure from the United States, which has urged both countries to finalize the agreement.
According to Eli Cohen, Israel’s Minister of Energy and Infrastructure, the government will not proceed with the agreement until it is certain that Israel’s security interests and economic terms are adequately protected.
Speaking in a televised interview, Cohen emphasized that while the deal carries immense economic and political significance, it cannot be approved at the expense of national priorities.
“As a member of the cabinet, I will not approve the deal before ensuring that Israel’s security interests are protected and that a fair and competitive price is guaranteed for Israeli citizens,” Cohen stated, as reported by Egypt Independent.
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The proposed gas export deal — Israel’s largest energy agreement to date — was signed in August 2025 between Leviathan partners led by NewMed Energy and the U.S. energy giant Chevron.
The contract entails the supply of roughly 130 billion cubic meters of gas from Israel’s Leviathan field to Egypt until 2040. The Leviathan reservoir, located off Israel’s Mediterranean coast, holds an estimated 600 billion cubic meters of reserves.
Under the agreement, Israel’s gas exports would help Egypt boost its liquefied natural gas (LNG) capacity, meet domestic demand amid chronic power shortages, and strengthen its ambitions to become a regional energy hub.
The project also includes plans to develop a new cross-border pipeline through Nitzana and upgrade the Leviathan field’s production facilities.
However, Israel’s firm stance on renegotiating certain terms has strained diplomatic engagements. The U.S. Energy Secretary, Chris Wright, who had planned a six-day visit to Israel to finalize discussions, canceled his trip after Israeli officials refused to adjust their position.
Cohen underscored that while Israel values its alliance with the United States, its government will not compromise on issues tied to national sovereignty and energy pricing fairness.
“The deal must be handled carefully, as it affects not just the economy but also our political and security interests,” he added.
The Leviathan field briefly halted exports during the 12-day conflict between Israel and Iran in June 2025 but later resumed operations.
Phase one of the export plan is expected to deliver about 20 billion cubic meters by 2026, with full completion projected by 2040.
Analysts describe Israel’s decision as a strategic recalibration in the face of rising geopolitical tensions in the Eastern Mediterranean, where energy deals have increasingly intertwined with diplomacy, security, and regional influence.
