Chevron, Israel Ink Deal for New Pipeline to Boost Gas Exports to Egypt

Pipeline Seen as Strategic Anchor in Eastern Mediterranean Energy Trade

by Oluwatosin Racheal Alabi

KEY POINTS


  • Chevron and Israel Natural Gas Lines will build the Nitzana pipeline to boost Israeli gas exports to Egypt by 600 million cubic feet per day.
  • The project, expected to begin construction in late 2025 and finish within three years, will raise Israel’s total export capacity to Egypt above 2.2 billion cubic feet per day.
  • The move comes alongside a $35 billion Leviathan gas deal and amid Egypt’s energy crunch, reinforcing Israel’s growing role in the Eastern Mediterranean energy trade

Chevron Mediterranean Limited and Israel Natural Gas Lines have signed a major transportation agreement to build the Nitzana export route, a new natural gas pipeline designed to expand shipments from Israel to Egypt. 

The project, unveiled Tuesday, is expected to significantly strengthen Israel’s role as a regional energy supplier while providing Egypt with a lifeline amid tight domestic supply conditions.

Under the plan, Chevron will construct a compressor station at Ramat Hovav in southern Israel, while state-owned Israel Natural Gas Lines will lay roughly 65 kilometers of pipe to the Nitzana border crossing. Once completed, the route will carry up to 600 million cubic feet per day of natural gas into Egypt.

Construction is slated to begin in late 2025 and take around three years, subject to regulatory approvals. 

If timelines hold, Israel’s total export capacity to Egypt could exceed 2.2 billion cubic feet per day, easing Cairo’s reliance on costly liquefied natural gas imports and bridging gaps caused by production disruptions.

Pipeline Seen as Strategic Anchor in Eastern Mediterranean Energy Trade

The announcement builds on recent moves by Leviathan field partners—Chevron, NewMed Energy, and Ratio Energies—who signed a $35 billion export agreement earlier this year to supply gas to Egypt. 

Volumes from Leviathan, Israel’s largest offshore reservoir discovered in 2010, are destined for both local use and liquefaction at Idku and Damietta facilities for re-export to Europe and beyond.

“This milestone reflects Chevron’s commitment to advancing energy security in Israel and regionally,” said Jack Baker, managing director of Chevron’s Eastern Mediterranean Business Unit. “The Nitzana export route will deliver substantial domestic economic benefits and also support energy security across the Eastern Mediterranean region.”

In parallel, Energean is preparing to send an additional 2 billion cubic meters annually from its Katlan field, a project expected to come online in 2027. 

Together, these developments underscore Israel’s rapid rise as a pivotal gas exporter, a role that has implications not only for regional energy markets but also for geopolitics in the wake of the Gaza conflict and its diplomatic fallout.

For Egypt, the new pipeline offers a badly needed pressure valve. The country, once a net gas exporter, has struggled with rising demand and periodic supply shortages that forced it to increase LNG imports at a steep cost. 

By securing more Israeli gas, Cairo hopes to stabilize its domestic grid while keeping export commitments to European customers searching for alternatives to Russian supplies.

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