In a region long shaped by energy politics and shifting alliances, a series of ambitious gas export agreements between Israel and Egypt is poised to reshape not only the Eastern Mediterranean’s energy landscape, but also its geopolitical map. According to a source familiar with the Israeli-Egyptian gas export file, as reported by Reuters and Financial Times, Israel is set to ramp up its natural gas exports to both Egypt and Jordan over the coming years. The expansion, underpinned by a string of technical upgrades and new pipeline projects, could boost Israel’s export capacity by as much as 1.8 billion cubic feet per day by 2028.
The plan, which has been years in the making, is structured in three main phases. The first phase, scheduled for completion by the first half of 2026, targets the full operation of the Ashdod–Ashkelon pipeline. By removing bottlenecks in the East Gas Line, Israel aims to increase gas flows to Egypt from 500 million cubic feet per day to around 800 million cubic feet daily. This initial boost will be crucial for Egypt, which has been grappling with declining domestic gas production and growing demand at home.
But the story doesn’t end there. The second phase, expected to kick off in the latter half of 2026, involves the much-anticipated FAIR project. This stage will see the addition of new compressor stations, providing an extra 400 million cubic feet per day in export capacity. The FAIR project is designed to strengthen the integration of gas networks not just between Israel and Egypt, but also with Jordan, enhancing supply flexibility and resilience—especially during peak demand periods.
The third and most significant phase will see the launch of the Nitzana pipeline in the first half of 2028. With a projected capacity of 600 million cubic feet per day, this new route will add a vital artery to the region’s energy infrastructure. As the source told Financial Times, "the Nitzana line is expected to provide a new, strategic export channel, further solidifying Israel’s role as a key gas supplier in the region."
Currently, Egypt already receives about one billion cubic feet of Israeli natural gas daily, delivered through existing cross-border pipelines. There’s also a pipeline connecting Egypt and Jordan, which can carry over 1.2 billion cubic feet of gas per day, ensuring that Jordan remains an integral part of this regional energy web.
One of the standout moments in this evolving partnership came in August 2025, when NewMed Energy, a partner in Israel’s Leviathan gas field, announced a massive deal valued at up to $35 billion to supply natural gas to Egypt. According to NewMed Energy, this is Israel’s largest ever export agreement. The Leviathan field, sitting off Israel’s Mediterranean coast and holding an estimated 600 billion cubic meters of reserves, is set to deliver around 130 billion cubic meters of gas to Egypt by 2040—or until all contracted volumes are fulfilled.
Israeli Prime Minister Benjamin Netanyahu hailed the agreement as "the largest gas deal in the country’s history." The deal’s significance is not lost on industry observers, who see it as a watershed moment for both Israel’s energy ambitions and Egypt’s aspirations to become a regional gas export hub.
The path to this agreement, however, was not entirely smooth. As Financial Times reported, Israel’s Energy Minister temporarily held up approval for the $35 billion deal with Egypt in order to secure better commercial terms for the Israeli market. This brief impasse highlights the delicate balance between national interests and regional cooperation in the energy sector.
Egypt, for its part, has been working to shore up its own gas supplies amid falling domestic production. Since April of last year, the country has resumed imports of liquefied natural gas to meet rising local demand. The government’s strategy is twofold: ramp up local production and supplement it with imported volumes, including those from Israel. By doing so, Egypt hopes to maintain a steady supply for its own needs while using its liquefaction facilities in Idku and Damietta to re-export surplus gas to Europe.
Indeed, the international dimension of these gas deals is hard to ignore. In June 2022, Egypt signed a memorandum of understanding with the European Union and Israel to expand gas exports to Europe via Egyptian liquefaction plants on the Mediterranean coast. The move is seen as part of Europe’s broader effort to diversify its energy sources and reduce reliance on Russian gas, especially in the wake of shifting global energy dynamics.
From a technical standpoint, the planned expansions are ambitious. By 2028, the combined pipeline network is expected to have an export capacity of 1.8 billion cubic feet per day, a significant leap from current levels. The Nitzana line alone is set to handle 600 million cubic feet daily, while the Ashdod–Ashkelon and FAIR projects will contribute a further 1.2 billion cubic feet per day collectively.
For Israel, these developments mark a dramatic transformation from energy importer to exporter. The government sees the pipeline network as a strategic asset that will not only boost export revenues but also cement Israel’s status as a regional energy powerhouse. As one official told Reuters, "this network will make Israel a major gas exporter in the region, enhancing both economic and diplomatic ties with neighbors."
Egypt, meanwhile, is positioning itself as the Eastern Mediterranean’s main gas export hub. By leveraging its existing infrastructure and geographic advantage, Cairo hopes to attract further investment and play a pivotal role in supplying both regional and European markets. The government’s vision is clear: turn Egypt into the go-to corridor for Eastern Mediterranean gas, with all the economic and geopolitical clout that entails.
Yet, challenges remain. The recent $35 billion deal faced delays, with Israel’s Energy Ministry insisting on improved terms before giving the green light. And while technical upgrades are underway, the region’s complex politics could still throw up obstacles. Nevertheless, industry insiders remain optimistic that the shared economic benefits will outweigh the risks.
As the clock ticks toward 2028, all eyes are on the Eastern Mediterranean. The stakes are high, and the rewards potentially transformative—not just for Israel and Egypt, but for the entire region. If the planned expansions proceed as envisioned, the coming years could see the Eastern Mediterranean emerge as a new epicenter in the global energy market, connecting producers and consumers from the Middle East to Europe in ways few could have imagined just a decade ago.
With pipelines being laid and deals signed, the region’s energy future is being written in steel and gas. The next chapter, it seems, is set to be one of unprecedented cooperation and shared prosperity—provided the momentum holds.
