{"id":671358,"date":"2025-09-07T00:00:00","date_gmt":"2025-09-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/09\/07\/israel-halts-its-usd-35-bn-gas-export-agreement-with-egypt-as-egyptian-israeli-relations-grow-tense\/"},"modified":"2025-09-07T00:00:00","modified_gmt":"2025-09-07T00:00:00","slug":"israel-halts-its-usd-35-bn-gas-export-agreement-with-egypt-as-egyptian-israeli-relations-grow-tense","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/09\/07\/israel-halts-its-usd-35-bn-gas-export-agreement-with-egypt-as-egyptian-israeli-relations-grow-tense\/","title":{"rendered":"Israel halts its USD 35 bn gas export agreement with Egypt as Egyptian-Israeli relations grow tense"},"content":{"rendered":"

Israeli Prime Minister Benjamin Netanyahu has frozen his country\u2019s USD 35 <\/strong>bn natural gas export agreement with Egypt last week<\/strong>, amid rising Israeli-Egyptian tensions over the war in Gaza and Cairo\u2019s military deployments in Sinai, according to industry publication Middle East Economic Survey (Mees)<\/a>. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

REMEMBER-<\/strong> The agreement, signed in early August, would see Leviathan partners \u2014 led by Chevron and Israel\u2019s NewMed Energy \u2014 export 130 bcm of gas to Egypt between 2026 and 2040<\/a>. Flows will first increase from 4.5 bn cubic metres in 2025 to 6.5 bn cubic metres as early as 2026 under the first 20 bn cubic meter phase of the agreement. Shortly after the agreement was signed, Prime Minister Moustafa Madbouly said<\/a> that it will in no way affect Egypt\u2019s stance on Palestine.<\/p>\n

But why? <\/strong>Netanyahu reportedly decided to freeze the agreement due to Egyptian military deployment in Sinai \u2014 which Israel claims violates the 1979 Camp David Accords. Israel had already breached the accords, occupying the Philadelphi Corridor back in May 2024 during its ground offensive into southern Gaza. <\/p>\n

Mees also reports that Netanyahu may be unhappy simply because he had no hand in the <\/strong>agreement<\/strong>, seeing as it was brokered with no direct involvement from the prime minister\u2019s office. A source close to the matter told the outlet that the agreement \u201cis just a very bad deal for Israel, any way you look at it. The ministry caved in, desperate for some publicity and a good news story.\u201d<\/p>\n

IN CONTEXT- <\/strong>Netanyahu over the weekend, said<\/a> Egypt was \u201cimprisoning Gaza residents who want to leave the war zone against their will,\u201d adding that he would let Gazans escape their country through the Rafah Border if they wanted to but Egypt is blocking their exit. Following his statement, the Egyptian Foreign Ministry once again reiterated<\/a> its stance regarding the displacement of Palestinians and referred to Netanyahu\u2019s remarks as \u201can attempt to prolong the escalation and instability, and avoid confronting the consequences of Israeli violations in Gaza.\u201d <\/p>\n

Diaa Rashwan claps back:<\/strong> State Information Service chief Diaa Rashwan had strong words for Netanyahu in an interview with Al Mashhad\u2019s Moataz Abdel Fattah (watch, runtime: 22:05<\/a>). \u201cI dare him to cancel the gas agreement \u2014 if he can bear the economic consequences,\u201d he said, adding that Egypt has more than one option when it comes to energy. \u201cThe Israeli prime minister is completely delusional if he thinks Israel is our only route for gas. The Egyptian administration has alternatives.\u201d <\/p>\n

Even before Netanyahu\u2019s freeze, there were logistical and commercial obstacles standing <\/strong>in the way of fully executing the agreement.<\/strong> The first phase \u2014 covering 20 bcm in supplies starting next year or upon Leviathan\u2019s capacity expansion \u2014 hinges on the partners reaching a final investment decision to scale the field to 2.1 bcf\/d. The Israeli Energy Ministry green lit the development plan in August. <\/p>\n

But the second phase to supply 110 bcm starting 2029, could prove more challenging.<\/strong> It requires agreement on capacity allocations for the planned 600 mcf\/d Nitzana pipeline connecting Israel to Egypt. Israel\u2019s Energy Ministry approved a transportation agreement for the pipeline on 4 September \u2014 adding more color to what a government source told EnterpriseAM last week<\/a> about construction of the pipeline starting next year. Still, disagreements persist over how Leviathan and Tamar partners will share the costs and split pipeline capacity. \u201cThe partners at Leviathan will be livid with the news that Netanyahu wants to freeze the gas deal,\u201d a source told Mees, suggesting that the pipeline announcement was an attempt to placate them.<\/p>\n

What\u2019s next?<\/strong> \u201cIsraeli Energy Minister Eli Cohen will have the final say on whether the deal is finalized, at least from the Israeli side, though it remains to be seen if he will oppose Netanyahu on the matter,\u201d Mees writes. <\/p>\n

Vulnerable Egyptian-Israeli relations also received attention from the nation\u2019s talking <\/strong>heads last night<\/strong>, with Ala Masouleety\u2019s Ahmed Moussa (watch, runtime: 8:13<\/a>) and El Hekaya\u2019s Amr Adib (watch, runtime: 27:31<\/a>) giving their two cents. \u201cNetanyahu\u2019s statements are stupid,\u201d Adib said, adding that Egypt will never allow the displacement of Palestinians into Sinai. \u201cTension between the two sides is at its peak,\u201d he added.<\/p>\n

ALSO ON THE ENERGY FRONT- <\/p>\n

Cyprus gas linkage moves ahead:<\/strong> Foreign Minister Badr Abdelatty and Oil Minister Karim Badawi discussed accelerating the integration of Cypriot gas fields into Egypt\u2019s infrastructure during a visit to Nicosia this week, according to a statement<\/a>. The visit included high-level talks with Cypriot President Nikos Christodoulides and\u2019 a presser with Energy Minister Giorgos Papanastasiou, during which Badawi said the two sides are making \u201csignificant progress\u201d on the project to link Cyprus\u2019 Cronos gas field to Egypt\u2019s liquefaction facilities, with exports to Europe expected to begin in 2027. <\/p>\n

REMEMBER-<\/strong> Egypt and Cyprus inked multiple agreements<\/a> earlier this year that will see Cyprus ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.<\/p>\n","protected":false},"excerpt":{"rendered":"

The move shows how gas can be used as leverage, according to Mees<\/p>\n","protected":false},"author":1,"featured_media":671359,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7207],"tags":[93,72,89,91],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-671358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-energy","tag-enterpriseam","tag-israel","tag-oil-and-gas","wpautop","entry"],"acf":{"mongo_id":"b39482e1-eba0-430f-964f-acf4bb07ad39","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/9\/298.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Israel halts its USD 35 bn gas export agreement with Egypt as Egyptian-Israeli relations grow tense","related_issue":[671353],"teaser":"The move shows how gas can be used as leverage, according to Mees","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/9\/.c7a6dc73-cd4f-43d5-bab5-3245fcb557a1.mp3"},"yoast_head":"\nIsrael halts its USD 35 bn gas export agreement with Egypt as Egyptian-Israeli relations grow tense - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2025\/09\/07\/israel-halts-its-usd-35-bn-gas-export-agreement-with-egypt-as-egyptian-israeli-relations-grow-tense\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Israel halts its USD 35 bn gas export agreement with Egypt as Egyptian-Israeli relations 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"Energy"","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/4\/661.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":680625,"url":"https:\/\/enterpriseam.com\/egypt\/2026\/01\/11\/egypt-balks-at-new-israel-first-conditions-in-usd-35-bn-natural-gas-deal\/","url_meta":{"origin":671358,"position":1},"title":"Egypt balks at new \u2018Israel-first\u2019 conditions in USD 35 bn natural gas deal","author":"enterpriseam admin","date":"11 January 2026","format":false,"excerpt":"Israel inserted new conditions to give itself wide-ranging powers to slash exports to Egypt to protect its own domestic grid","rel":"","context":"In "The Big Story Today"","block_context":{"text":"The Big Story 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Steinitz called the USD 19.5 bn gas agreement \u201cthe\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":669828,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/10\/israel-to-more-than-double-leviathan-gas-exports-to-egypt-under-usd-35-bn-agreement\/","url_meta":{"origin":671358,"position":3},"title":"Israel to more than double Leviathan gas exports to Egypt under USD 35 bn agreement","author":"enterpriseam admin","date":"10 August 2025","format":false,"excerpt":"The signing marks Israel\u2019s largest ever export agreement","rel":"","context":"In "Energy"","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/6\/113.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":581656,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/19\/chevron-is-trying-to-figure-out-a-way-of-exporting-cypriot-gas-via-egypt\/","url_meta":{"origin":671358,"position":4},"title":"Chevron is trying to figure out a way of exporting Cypriot gas via Egypt","author":"enterpriseam admin","date":"19 February 2023","format":false,"excerpt":"Chevron takes a step forward on plans to process Cypriot gas here: Chevron has officially requested permission from Shell to use its underutilized West Delta Deep Marine (WDDM) facilities on Egypt\u2019s Mediterranean coast to process gas from Cyprus\u2019 Aphrodite field, oil and gas publication MEES reports. Chevron is a 35%\u2026","rel":"","context":"In "Energy"","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/israel-gas-1600px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":666239,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/06\/01\/nitzana-pipeline-delay-caps-imports-of-israeli-gas\/","url_meta":{"origin":671358,"position":5},"title":"Nitzana pipeline delay caps imports of Israeli gas","author":"enterpriseam admin","date":"1 June 2025","format":false,"excerpt":"The delay is expected to limit Israeli gas exports to Egypt to 1.6 bn cfd from 2H 2026","rel":"","context":"In "Energy"","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/8\/254.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/671358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=671358"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/671358\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/671353"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/671359"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=671358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=671358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=671358"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=671358"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=671358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}