Reports: US pressures Israel to approve $35 bn gas deal with Egypt

Israel’s Energy Minister, Eli Cohen, is expected to approve a major gas export agreement with Egypt worth an estimated $35 billion, according to the Israeli newspaper Yedioth Ahronoth. The deal, previously rejected in recent weeks, is now anticipated to be announced shortly amid reported pressure from the United States.

The agreement would commit Israel to exporting fixed quantities of natural gas to Egypt until 2040.

The development coincides with a government discussion scheduled for Thursday on a Finance Ministry proposal to restrict natural gas exports in order to safeguard domestic energy security. Roughly 70 per cent of Israel’s electricity production relies on natural gas, prompting concerns over how much can be exported without jeopardising national supply.

According to the report, the Gas Committee—headed by Yossi Dayan, Director-General of the Ministry of Energy—is preparing to issue recommendations on the balance between gas allocated for domestic consumption and that earmarked for export.

The newspaper noted that the government now faces a strategic dilemma: whether to preserve more of its gas reserves to ensure long-term energy security and stable electricity prices, or to leverage gas exports as a political and economic tool to strengthen regional relations, particularly with Egypt and Jordan.

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