Israel approves a $37 billion deal to deliver gas to Egypt

Prime Minister Benjamin Netanyahu of Israel on Wednesday said that he had approved the “largest gas deal” in the country’s history, granting an export permit for a $37 billion agreement allowing Chevron and other energy companies to significantly expand gas deliveries to neighbour-ing Egypt.

- EPHRAT LIVNI JOHNATAN REISS

Mr Netanyahu trumpeted the agreement, saying it would bolster Israel’s regional position, generate about $18 billion in taxes and other revenue over time and help to ensure that energy prices remain affordable for Israeli consumers.

“This deal greatly strengthens Israel's status as a regional energy power and contributes to stability in our region,” he said in a statement.

For all the enthusiasm in the announcement, it arrived unusually late, some analysts said — months after the deal was initially reached and announced.

In August, the owners of the Leviathan gas field in Israel — predominantly an Israeli company called NewMed Energy and the American energy giant Chevron — said they had reached an agreement with Egypt to significantly increase and extend a 2019 arrangement.

But unless Israel granted the export permit, the deal between companies there and in Egypt could not be completed. The permit approval from Israel was the final step, a NewMed Energy spokesperson said Wednesday.