День: 21.12.2025

Gas deal between Egypt and Israel: market logic or political calculations?

An oil platform in Israel's offshore Leviathan gas field is seen while an Israeli navy vessel patrols the Mediterranean Sea, Israel, Thursday, Sept. 19, 2024. (AP Photo/Ariel Schalit)

The deal to import gas from Israel has returned to the forefront of controversy once again, after being officially finalized, opening a wide door for debate between those who view it as an economic decision governed by supply and demand equations, and those who see it as a step inseparable from more complex political, regional, […]

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An oil platform in Israel's offshore Leviathan gas field is seen while an Israeli navy vessel patrols the Mediterranean Sea, Israel, Thursday, Sept. 19, 2024.

The deal to import gas from Israel has returned to the forefront of controversy once again, after being officially finalized, opening a wide door for debate between those who view it as an economic decision governed by supply and demand equations, and those who see it as a step inseparable from more complex political, regional, and international considerations.

The Israeli Prime Minister announced on Wednesday the approval of an agreement in the field of natural gas with Egypt, describing it as the «largest gas deal» in history.

Amid Egyptian official confirmations of the purely commercial nature of the deal, and expert estimates who see an inseparable intertwining between economics and politics, fundamental questions arise about the gains for both parties and the biggest beneficiary of this deal.

Official Position

In an attempt to contain the ongoing debate, the head of the Egyptian State Information Service emphasized that the gas deal with Israel falls within the framework of economic deals subject to market rules and international investment mechanisms, and carries no political dimensions or implications.

He confirmed in an official statement that the parties to the agreement are purely commercial companies, including the American company «Chevron,» alongside Egyptian companies specialized in receiving, transporting, and trading gas, without direct government intervention in concluding these contracts.

He considered that the agreement serves a strategic interest for Egypt, represented in strengthening its position as the sole regional center for gas trading, relying on its advanced infrastructure and liquefaction stations capable of meeting regional and international market needs.

A Purely Economic Decision

For his part, an economic expert stressed that the deal is, in essence, a purely economic decision, explaining that the gas market is divided into 3 main types in terms of cost:

  • Local gas at a cost of approximately $4
  • Pipeline gas at a cost of about $7.60
  • Liquefied gas, the cost of which reaches about $13.
Observers: Relying on imported gas from Israel alleviates immediate pressure on Egypt but restricts its room for maneuver in the future.

The expert pointed out that the cost of Israeli gas is approximately half that of pipeline gas, which explains Egypt’s direction towards importing pipeline gas, noting that the gas deal with Israel will provide Egypt with about one billion cubic meters, covering approximately 40% of the volume of domestic consumption.

He added that the alternative to this deal would have cost the state between $3 and $3.2 billion annually, excluding operating expenses, confirming that the deal is primarily economic and should not be loaded with dimensions beyond this framework.

Are There American Pressures?

In contrast, a former Egyptian ambassador believes that a complete separation between economics and politics is unrealistic, confirming in statements that the deal — although announced as economic — is not devoid of clear political considerations.

He believes that Israel’s approval to complete the deal came in response to American pressures «aimed at achieving personal gains for the American president and his family, given their large share of shares in Chevron, the main foreign investor in the Leviathan field, from which the gas is extracted.»

The deal also serves, in his estimation, efforts to bring Israel out of its international isolation and integrate it into the region, and to promote that as one of the achievements of the Trump administration.

On the economic level, he explained that the declared gains of the deal consist of obtaining gas at a price lower than the market for domestic use, while exporting the surplus to Europe at higher prices. However, he warned that these calculations remain hostage to the continuation of European demand linked to the war and the failure to reach a political settlement.

He added that any change in this equation and a drop in global prices could cause the deal to lose a large part of its expected gains, a possibility strongly present given the fluctuations in the global energy market.

He indicated that

Israel

Israel is a country in the Middle East, established as a modern state in 1948 following a United Nations partition plan. It is a historic homeland of the Jewish people, containing significant religious sites for Judaism, Christianity, and Islam, such as Jerusalem’s Western Wall and the Dome of the Rock.

Leviathan gas field

The Leviathan gas field is a large natural gas reservoir located in the Mediterranean Sea off the coast of Israel. Discovered in 2010, it is one of the world’s largest offshore gas finds of the 21st century and began production in 2019, significantly altering Israel’s energy independence and export capabilities.

Mediterranean Sea

The Mediterranean Sea is a historically significant body of water that has served as a crucial crossroads for trade, cultural exchange, and conflict since ancient times. It was central to the development of classical civilizations like the Egyptians, Greeks, and Romans, and later to the rise of maritime republics and empires.

Egypt

Egypt is home to one of the world’s oldest civilizations, with a recorded history spanning over 5,000 years and famed for its pharaohs, pyramids, and monuments along the Nile River. Its cultural legacy, from ancient wonders like the Great Sphinx to its pivotal role in the Greco-Roman and Islamic worlds, continues to define its global significance today. Modern Egypt remains a major cultural and political center in the Arab world, centered on its capital, Cairo.

Chevron

Chevron is a major American multinational energy corporation, originally founded in 1879 as the Pacific Coast Oil Company. It grew through mergers, including its 1984 union with Gulf Oil, to become one of the world’s largest integrated oil and gas companies. The corporation is a key player in global energy production, refining, and marketing.

Europe

Europe is a continent with a rich and complex history, shaped by ancient civilizations like Greece and Rome, the Middle Ages, the Renaissance, and periods of both conflict and cooperation. Its cultural sites are exceptionally diverse, ranging from prehistoric cave paintings to medieval castles, grand cathedrals, and modern architectural landmarks. This history is physically preserved in countless UNESCO World Heritage sites that dot the landscape.

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