JERUSALEM (AP) — Israeli Prime Minister Benjamin Netanyahu said Wednesday he has approved a $35 billion deal to export natural gas to Egypt, the largest gas deal in Israel’s history. The deal could also help repair relations strained by the two countries during their two-year war in the Gaza Strip.
The gas will be transported to Egypt over the next 15 years by US energy giant Chevron, the main owner of natural gas fields on Israel’s Mediterranean coast. Half of the proceeds are expected to flow into Israeli state coffers.
Netanyahu said in a recorded video statement that the agreement “significantly strengthens Israel’s position as a regional energy power and contributes to the stability of our region.”
Egypt, which borders Israel and Gaza, has been a key mediator between Israel and the Palestinian militant group Hamas, ultimately brokering a U.S.-brokered ceasefire in October. Cairo has also been an outspoken critic of Israel’s offensive, which has killed tens of thousands of Palestinians and caused widespread destruction in Gaza.
Egypt did not immediately confirm Netanyahu’s statement.
Israeli Energy Minister Eli Cohen, a close ally of Netanyahu, had previously delayed the deal with Egypt, claiming the terms were unfavorable to Israel. His delays prompted U.S. Energy Secretary Chris Wright to cancel a trip to Israel in October.
But Cohen stood with Netanyahu during the announcement late Wednesday and said he supported the deal’s final terms.
Israel discovered sizable natural gas fields off its Mediterranean coast in the early 2000s and began exporting gas nearly a decade ago — first to Jordan and later to Egypt.
In another development, German lawmakers approved an expansion of the agreement to defend Israel’s advanced Arrow 3 missile defense system, the Israeli Defense Ministry said on Wednesday.
The expansion increases the value of the deal from $3.5 billion to $6.5 billion, making it Israel’s largest ever defense export deal, according to the Israeli Defense Ministry. Germany purchased the Arrow 3 missiles from Israel to strengthen its air defense capabilities against Russia.
