Egypt says its major natural gas deal with Israel is only about business. Officials stress that the agreement does not signal any change in Egypt’s diplomatic position. The deal, which Israel has approved, will increase energy cooperation at a tense time in the region.
On Thursday, Egypt again stated that buying gas from Israel is purely a business decision, not a political statement. Officials explained that private companies made the deal for market reasons, and it does not reflect any change in Egypt’s political views.
On Wednesday, Israel approved the deal, allowing Israeli companies to sell up to $35 billion in natural gas from the Leviathan field for over 15years. According to Reuters, Chevron and its partners, NewMed and Ratio, will supply Egypt with about 130 billion cubic meters of gas under the agreement.
Egyptian officials said the government was not involved in arranging the deal and that it is unrelated to politics.
Deal Happens During Tense Times
The approval comes during a challenging period in the region. Tensions have continued since Hamas attacked Israel on October 7, 2023, and the subsequent war in Gaza. As a result, any cross-border cooperation is especially significant.
Diaa Rashwan, head of Egypt’s State Information Service, said Egypt’s position on the Palestinian issue remains unchanged. He stated that Egypt continues to support Palestinian rights, opposes forced displacement, and believes a two-state solution is essential for lasting peace. He made these comments in response to questions about the gas deal’s political impact.
Israeli Prime Minister Benjamin Netanyahu described the gas export deal as the largest in Israel’s history and said it could help bring more stability to the region.
Meanwhile, Egypt’s energy sector is struggling. Gas production has dropped since 2022, affecting the country’s goal to become a regional energy hub. As a result, Egypt needs to import more gas to meet demand. The new supply from Israel should help cover the shortfall while Egypt works to boost its own production and secure future supplies. Although Egypt and Israel have cooperated on economic matters before, the size and timing of this deal have drawn significant political attention. Still, Egypt insists the agreement is strictly about business, not politics.
