Israel nears gas sales to Egypt as Mideast unrest flares

In the midst of some of the worst Middle East tensions in a decade, one-time enemies Egypt and Israel are negotiating deals that may mean the sale of $60 billion in Israeli natural gas to liquefaction plants in Egypt.

The talks come as Israel resumes air strikes on Gaza after Hamas, which the U.S. and the European Union classify as a terrorist group, fired rockets following a breakdown in Egypt’s efforts to broker a cease-fire. The move is all the more improbable because Egypt -- little more than a year ago -- was under the sway of the Muslim Brotherhood, which had begun to steer the country away from viewing Israel as a trading partner.

Noble Energy Inc. (NBL:US) and units of Israel’s Delek Group Ltd. (DLEKG) plan to deliver as much as 6.25 trillion cubic feet of gas from the Tamar and Leviathan offshore fields to LNG facilities in Egypt’s Damietta port and the coastal town of Idku. Executives said this week they expect to finalize the agreements by year-end.