Netanyahu approves $35 billion natural gas export deal to Egypt, biggest in Israeli history

The approval by Israeli Prime Minister Benjamin Netanyahu of a monumental $35 billion natural gas export deal to Egypt marks a significant turning point in the energy landscape of the Middle East and holds substantial implications for global energy dynamics, including for India. This 15-year agreement, facilitated by U.S. energy giant Chevron, involves the supply of natural gas from fields off Israel's Mediterranean coast, solidifying Israel's emergence as a key regional energy player.

**Background Context:** For decades, Israel was an energy-poor nation, heavily reliant on imports. This began to change dramatically in the early 21st century with the discovery of vast offshore natural gas reserves in the Eastern Mediterranean, notably the Tamar field (discovered 2009) and the Leviathan field (discovered 2010). These discoveries transformed Israel's energy outlook, moving it from a net importer to a potential exporter. Concurrently, Egypt, despite its own significant gas reserves, possesses advanced liquefied natural gas (LNG) terminals (e.g., Idku, Damietta) that are currently underutilized or used for domestic consumption, making it an ideal partner to process and potentially re-export Israeli gas to Europe and Asia.

**What Happened:** The deal, termed the 'biggest in Israeli history,' entails Chevron, a major stakeholder in the Leviathan gas field, delivering natural gas to Egypt over 15 years. This gas will likely be used by Egypt for its growing domestic energy needs and, crucially, processed at its LNG facilities for re-export. The approval by PM Netanyahu underscores the strategic importance both nations place on this energy cooperation, which transcends historical political complexities.

**Key Stakeholders Involved:**

* **Israel:** The government, led by PM Netanyahu, views this deal as a major economic boon, generating substantial revenue and enhancing Israel's geopolitical standing. Companies like Chevron, Delek Drilling, and Ratio Oil Exploration, which operate the gas fields, are direct beneficiaries.

* **Egypt:** The Egyptian government and its national gas company, EGAS, secure a reliable long-term energy supply for domestic consumption and position Egypt as a vital regional energy hub, leveraging its strategic location and LNG infrastructure. This bolsters its economy and regional influence.

* **Chevron (U.S. Energy Giant):** As the operator and a key owner of the gas fields, Chevron plays a pivotal role in the extraction and delivery. For Chevron, this deal represents a massive commercial opportunity and strengthens its presence in a strategically important energy region.

* **European Union:** Although not a direct party, the EU is an indirect stakeholder. Facing energy security challenges, particularly after geopolitical events impacting Russian gas supplies, the EU is keen on diversifying its energy sources. Egyptian LNG terminals offer a potential route for Eastern Mediterranean gas to reach Europe.

**Why this matters for India:**

India, a rapidly growing economy and the world's third-largest energy consumer, is heavily dependent on energy imports. This deal impacts India in several ways:

* **Energy Security:** Diversification of global energy sources and supply routes is critical for India. The strengthening of the Eastern Mediterranean as an energy hub, with Egypt as a potential re-exporter, indirectly contributes to the stability and diversity of global energy markets, which benefits India by potentially offering alternative LNG sources in the future.

* **Geopolitical Alignment:** India maintains strong strategic partnerships with both Israel and Egypt. This energy cooperation aligns with India's 'Act West' policy, aiming to deepen engagement with the Middle East. Furthermore, India is part of the I2U2 Group (India, Israel, UAE, USA), which focuses on joint investments and cooperation, including in energy. A stable and economically prosperous Middle East, fostered by such deals, is in India's strategic interest.

* **Economic Impact:** While India is not a direct recipient of this gas, global energy prices and supply stability directly affect India's import bill and economic growth. Any development that increases global supply or stabilizes regional markets is beneficial.

**Historical Context:** The deal represents a significant evolution in Arab-Israeli relations. Historically marked by conflict, the region has seen a gradual shift towards economic cooperation, particularly in energy. While the Abraham Accords (2020) normalized relations between Israel and several Arab nations, energy deals like this with Egypt, which signed a peace treaty with Israel in 1979, demonstrate an ongoing deepening of economic ties that can underpin broader regional stability.

**Future Implications:** This deal solidifies the Eastern Mediterranean's role as a major natural gas province. It could pave the way for further energy infrastructure projects, such as additional pipelines (e.g., the proposed EastMed pipeline to Europe), and encourage more exploration. The economic interdependence fostered by such agreements has the potential to enhance regional stability, though maritime boundary disputes (e.g., between Israel, Lebanon, Turkey) remain a point of contention. For India, it means a more diverse and potentially stable global energy market, and continued strategic engagement with a region undergoing significant economic and geopolitical shifts. India's energy policy, enshrined in its National Energy Policy (2017) and broader foreign policy objectives like promoting international peace and security (Article 51 of the Indian Constitution, though indirectly related to stable energy regions), will continue to monitor and adapt to such developments.