Egypt's gas deal with Israel extension of 2019 agreement

Atef said the extension is part of a two-pronged strategy to boost domestic gas and petroleum production while diversifying energy sources to strengthen Egypt’s role as a regional energy hub.

His comments were the first official response since Israeli firm NewMed Energy announced what it called a “landmark deal” on Thursday. 

The consortium said the agreement would export 130 billion cubic metres of gas to Egypt through 2040, valued at an estimated $35 billion.

Atef stressed the figure was not final, citing a flexible pricing formula tied to market conditions. The extended contract, he said, would guarantee a stable supply and support Egypt’s energy security during “a period of rapid geopolitical change.”

“It is in our best interest. If we need the gas, that’s fine; if not, that’s also fine,” he said. “The priority is strategic insurance.”

He noted Egypt had also signed a gas export agreement with Cyprus in February 2025 and was pursuing other eastern Mediterranean deals, aiming to balance domestic needs with surplus for export.