Netanyahu’s epic U-turn! Israel seals $35B gas deal with country he accused as ‘Hamas supporter’

Jerusalem: Israeli Prime Minister Benjamin Netanyahu on Wednesday approved a landmark gas export deal with Egypt, valued at 112 billion shekels ($34.7 billion), marking the largest such agreement in the country’s history.

The deal involves American energy giant Chevron and Israeli partners, and is expected to supply Egypt with a total volume of 130 billion cubic metres of natural gas.

Speaking during a televised address, Netanyahu highlighted that 58 billion shekels ($18 billion) from the deal will go to state coffers. He said the revenue will support education, healthcare, infrastructure, security, and future generations, while strengthening Israel’s position as a regional energy power.

Energy Minister Eli Cohen, present at the announcement, described it as the largest export deal in the nation’s history. NewMed Energy, an Israeli company involved in the deal, hailed the agreement as “a historic day for the natural gas sector” that will ensure continued investment and regulatory stability.

The deal is significant not only for Israel’s economy and energy security but also for regional diplomacy. Netanyahu previously accused Egypt of aiding Hamas, making this agreement a notable example of pragmatic energy cooperation despite political tensions.

However, Israeli NGO Movement for Quality Government expressed concern over the approval process, calling for transparency regarding the deal’s implications for long-term gas reserves and consumer pricing.

The $34.7 billion gas deal represents a major strategic and economic milestone for Israel. Of the total, nearly half will contribute directly to the state budget, while the remainder will benefit the participating companies. The supply is projected to significantly boost Egypt’s energy needs and create long-term export revenue for Israel.

Signed in coordination with Chevron and Israeli partners, the agreement demonstrates growing regional interdependence on energy resources. The deal also underscores Israel’s ambitions to position itself as a major energy exporter in the Middle East.

Netanyahu described the move as strengthening Israel’s regional influence and energy security, while Energy Minister Eli Cohen emphasised its historic scale. NewMed Energy CEO Yossi Abu called it a turning point that guarantees continued investment and long-term stability for the sector.

While the deal is lauded for its economic and diplomatic benefits, watchdog groups have urged the government to release full details, noting concerns about sustainability of Israel’s natural gas reserves, pricing for domestic consumers, and long-term strategic implications.
(With AFP inputs)