Energy Law | Israel Approves Major Natural Gas Export Expansion to Egypt

The State of Israel has granted approval for additional gas exports to a customer in Egypt of up to ~130 BCM of natural gas from the Leviathan gas field.

Beyond its massive monetary scale, this is a policy-backed move aligned with the Ministry of Energy’s recent draft "Dayan" gas policy report, that supports expanded gas exports alongside existing infrastructure developments and more gas exploration, while preserving and protecting domestic energy security and supply. 

The planned expansion of Leviathan's existing natural gas production and export capabilities will allow: 

🔹 Long-term investment certainty, anchored in long-term binding export contracts for up to ~130 BCM to Egypt, linked to phased expansion of Leviathan’s production and export infrastructure.

🔹 Phased increase of gas export exports that are tied to production capacity thresholds, and infrastructure development milestones.

🔹 Regulatory safeguards, where domestic pricing, supply and demand get priority, with gas exports subordinate to domestic supply obligations.

🔹 Domestic safeguards, namely the MOE retains authority to limit or reduce gas exports in response to domestic supply needs or emergency conditions.

Taken together, the issuance of the new export permit reinforces Israel’s position, together with the Leviathan partnership (Chevron, NewMed & Ratio), as a reliable regional natural gas exporter, backed by a structured, policy-driven framework and strong regulatory oversight.

Having followed Israel’s gas policy closely over the years, I’m often asked for my perspective on developments like this.

In my view, this is a strategically sound and regionally constructive step for Israel, its gas sector stakeholders, Egypt, and the broader Eastern Mediterranean energy landscape. The timing couldn't be better.