Israel and Egypt sign a $35 billion natural gas supply contract

Israeli company NewMed has signed a contract with Egypt to supply natural gas worth an estimated $35 billion. The contract will lead to a threefold increase in the volume of gas delivered to Egypt from the Leviathan gas field. The field is jointly owned by NewMed, Chevron, and Ratio Oil and currently supplies 4.5 billion cubic meters of gas to Egypt. Under the terms of the contract, gas flows to Egypt will increase to 12 billion cubic meters by 2029, enabling Egypt to reduce its imports of more expensive LNG. The 15-year contract covers the delivery of a total of 130 billion cubic meters of gas, equivalent to two years of gas consumption for Egypt.