NewMed Energy and Partners Sign Largest Export Deal in Israel's History with $35 billion of Natural Gas Exports from Leviathan Reservoir to Egypt

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• Aggregate total quantity of ~130 BCM (4.59 TCF)
  • Stage one: initial sale of ~20 BCM (0.7 TCF) from 2026
  • Stage two: upon completion of the Leviathan expansion project, a further ~110 BCM (3.88 TCF) of natural gas will be exported
• Estimated valuation of $35 billion by 2040
• Builds on existing ~60 BCM export agreement with Egypt
• Current prospective resources of ~600 BCM (21.2 TCF) of natural gas in Leviathan reservoir
• The deal should pave the way for the expansion of Leviathan and ensure the supply of natural gas to the Israeli market until 2064

TEL AVIV, Israel, Aug. 7, 2025 /PRNewswire/ -- NewMed Energy and the partners in the Leviathan project today announce the signing of a landmark deal for the sale of natural gas from the Leviathan reservoir to the Egyptian market. The deal was signed with Blue Ocean Energy (BOE), an existing off-taker of natural gas from Leviathan for Egypt.

The deal includes an aggregate total quantity of ~130 BCM (4.59 TCF) of natural gas, with a financial value estimated at around $35 billion. The agreement signifies the largest export deal ever signed in Israel's history and the largest deal since the discovery of the natural gas reservoirs in Israel.  Under the terms of the deal, the sale of the gas to Egypt is expected to continue until 2040, or until all of the contract quantities are fulfilled.

The Leviathan reservoir began exporting natural gas to Egypt shortly after commencement of production in January 2020. Currently, the reservoir is supplying a total contract gas quantity of ~60 BCM, with an annual volume of 4.5 BCM (0.16 TCF), to Egypt through Blue Ocean Energy, plus SPOT quantities (interruptible daily sales), which are offset against the total contract quantity.

The original export agreement with Egypt, signed in 2019, is due to end once the full contracted quantity of ~60 BCM has been sold, expected in the early 2030's. Since commencement of natural gas production from the reservoir, ~ 23.5 BCM of natural gas has been sold from Leviathan to the Egyptian market.

Today's deal will eventually replace the existing agreement, and is divided into two stages:

• Stage one relates to the sale of 20 BCM (0.7 TCF).
• Stage two relates to the sale of an additional ~110 BCM (3.88 TCF). This stage will begin only after completion of the Leviathan expansion project and the construction of the new transmission pipeline from Israel to Egypt via Nitzana.

Stage one is expected to take effect in the first half of 2026. This stage will commence immediately upon the completion of two advanced projects which will enable expansion of the production and the transportation volume:

1. Connection of a third pipeline from the Leviathan reservoir to the production platform, which will increase the produced gas quantity to over 14 BCM (0.5 TCF) per annum.
2. Connection of the Ashdod-Ashkelon transmission pipeline, which is currently being carried out by INGL and is expected to increase the natural gas transmission capacity in the EMG pipeline by an additional ~2 BCM, which connects between Ashkelon and el-ʻArīsh.

The two projects are expected to be completed at the beginning of 2026, and immediately thereafter, stage one of the agreement will take effect. As a result, an additional 2 BCM (0.07 TCF) shall be sold to Egypt per annum out of a total volume of 20 BCM (0.7 TCF).

Stage two of the new agreement is expected to take effect after completion of the Leviathan expansion project (Phase 1B of the development plan). The expansion project will dramatically increase the natural gas quantity currently being produced in Israel by ~30% and will bring the reservoir's annual production capacity to ~21 BCM (0.74 TCF).

A new pipeline to Nitzana will also be constructed at this stage to increase transportation capacity for exports from Israel to Egypt. Total gas exports for stage two of the new agreement is ~110 BCM (3.88 TCF), in varying annual quantities, which will bring the total sales from Leviathan to Egypt to a total annual quantity of ~12 BCM (0.42 TCF).

Therefore, the total sale of ~130 BCM (4.59 TCF) of natural gas, according to a price formula that is primarily based on the Brent oil barrel price, will result in revenues of around $35 billion for all of the partners in the reservoir. The new agreement is thus emerging as the largest export deal in the history of Israel, as well as the largest and most significant deal since the discovery of the natural gas reservoirs in Israel.

The completion of the deal will pave the way for a final investment decision (FID) for the Leviathan expansion project (Phase 1B). As part of the preparations, last February the Leviathan partners submitted an update to the reservoir's development plan to increase annual production capacity to ~21 BCM, with a possibility of further expansion to 23 BCM of natural gas per annum. The export permit application was also recently submitted in relation to the new deal. The reservoir expansion plan includes the drilling of additional wells, the addition of related subsea systems and expansion of the processing facilities on the platform, as well as a possibility of laying a fourth pipeline between the reservoir and the production platform.

Leviathan is the largest natural gas field in the Mediterranean Sea and one of the largest in the world. According to the latest prospective resources report for the Leviathan reservoir, the reservoir contains ~600 BCM (21.2 TCF) and, according to the discounted cash flow report, production is expected to continue until at least 2064.

Yossi Abu, CEO of NewMed Energy: "This is the most strategically important export deal to ever occur in the eastern Mediterranean, and strengthens Egypt's position as the most significant hub in the region.

"Since it begun production, Leviathan has brought many benefits both domestically and internationally, and the reservoir's expansion has been NewMed's key priority for years. This deal, made possible by our strong regional partnerships, will unlock further regional export opportunities, once again proving that natural gas and the wider energy industry can be an anchor for collaboration.

"I'd like to thank our partners in the asset, our Egyptian counterparts and the NewMed staff involved in the deal as we reach a milestone for our company and beyond."

NewMed Energy will be hosting an English-language webinar today at 12:00 PM (BST). If you would like to attend, please join via this link: https://us06web.zoom.us/webinar/register/WN_2wR_-BPGSoKzF04me7yDYg#/registration

For more information, please read NewMed's Immediate Report: https://newmedenergy.com/wp-content/uploads/2025/08/NewMed-IR-Amendment-to-Agreement-for-Export-to-Egypt-6.8.2025_.pdf

Contacts

Israel media:
Li-Or Avnon
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International media:
Billy Clegg | Owen Roberts | Violet Wilson
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