Egypt claims gas deal with Israel as'strictly business'

Egypt said Thursday that the natural gas agreement with 'Israel is a purely commercial arrangement without any political dimension. It was concluded by private energy companies under market rules, with no direct government involvement.

Israel approved on Wednesday an export agreement signed in August between Chevron and NewMed and Ratio to provide up to $35 billion worth of gas from the Leviathan Natural Gas Field to Egypt.

The agreement comes amid increased?regional tensions after the Palestinian group Hamas launched a deadly attack against Israel on October 7, 2023 and Israel's subsequent conflict with Gaza, which has resulted in tens of thousands of deaths.

Diaa Rashwan is the head of Egypt’s State Information Service. She said that Egypt’s position on?Palestinian causes was "firm and unwavering," supporting the legitimate rights and the Palestinian people.

Benjamin Netanyahu, the Israeli prime minister, described the deal as the biggest gas deal in Israel’s history on Wednesday. He added that it would help to bolster the?regional stabilty.

According to the agreement, Leviathan will sell approximately 130 billion cubic meters of gas to Egypt until 2040, or until all contract value is met, according to a NewMed statement.

Egypt's production of gas began to decline in 2022. This forced it to abandon its ambitions to be a regional hub for supply. Israel has been increasingly relied upon to cover the gap. Reporting by Enas Alashray and Yomna Elhab. Alexandra Hudson, Mark Potter and Mark Potter edited the article.

(source: Reuters)