Chevron and Israel Formulate Gas Pipeline Agreement to Egypt

Chevron, in collaboration with state-owned Israel Natural Gas Lines Ltd, has finalized an agreement to construct a natural gas pipeline from Israel’s significant Leviathan gas field to Egypt. This partnership, confirmed by NewMed Energy, will facilitate the transmission of natural gas through the Nitzana Project, enhancing energy supply between the two nations.

The agreement involves Chevron Mediterranean Limited, the operator of the Leviathan Project, which will work with Israel Natural Gas Lines to establish an onshore connection between the Israeli and Egyptian transmission systems in the Nitzana area. NewMed Energy, which holds a 45.34% interest in the Leviathan project, noted that the initiative will include the construction of a pipeline along with a compressor station located in the Ramat Hovav area in southern Israel.

Plans for the new pipeline encompass approximately 65 kilometers (40 miles) of infrastructure leading to the Nitzana border crossing. Once operational, this pipeline is expected to enable the flow of up to 600 million cubic feet of natural gas per day towards Egypt.

Chevron aims to boost gas deliveries from Israel and increase the volume of U.S. liquefied natural gas (LNG) supplied to Egypt to meet the escalating demand for energy, particularly as regional tensions continue. “Egypt needs all the gas it can get,” stated Freeman Shaheen, Chevron’s president for global gas, during the recent Gastech conference in Milan, according to Bloomberg.

In response to reduced domestic gas production, Egypt resumed LNG imports last year, which has tightened its power balance and necessitated the acquisition of additional spot and term cargoes. The introduction of new floating import terminals has further facilitated this demand, with LNG receipts in 2025 projected to double compared to levels seen in 2018.

Piped gas supplies from Israel have become essential to Egypt’s energy strategy. Chevron not only manages the Leviathan field but also oversees another offshore field that contributes to gas supplies for Egypt. While the Leviathan operations faced temporary shutdowns during the Israel-Iran conflict due to security concerns, gas flows have since resumed.

In a significant development for the region, Israel and Egypt announced a long-term gas agreement in August, valued at approximately $35 billion. This agreement marks Israel’s largest gas deal to date, reinforcing Cairo’s strategy to enhance its import capabilities and secure energy resources.

This pipeline project underscores the growing collaboration between Israel and Egypt in the energy sector, aiming to stabilize and diversify energy supplies amidst fluctuating regional dynamics.