Israeli Prime Minister Benjamin Netanyahu announced Wednesday that he has approved a $35 billion natural gas export agreement with Egypt, marking the largest gas deal in Israel’s history. The 15-year deal could also help ease tensions between the two nations following the two-year war in the Gaza Strip.

U.S. energy giant Chevron, a major stakeholder in Israel’s offshore gas fields in the Mediterranean, will deliver the gas. Approximately half of the revenue is expected to flow to Israel’s state treasury.

In a recorded statement, Netanyahu said the deal “greatly strengthens Israel’s position as a regional energy power, and it contributes to stability in our region.” Egypt, which borders both Israel and Gaza and has played a key mediating role with Hamas ahead of the U.S.-brokered ceasefire in October, has not immediately confirmed the announcement.

The agreement had faced earlier delays from Israeli Energy Minister Eli Cohen, who initially criticized its terms as unfavorable to Israel. Cohen joined Netanyahu at Wednesday’s announcement, expressing support for the finalized deal.

Israel began exporting natural gas nearly a decade ago, initially to Jordan and later to Egypt, following the discovery of substantial offshore reserves in the early 2000s.

Separately, Israel’s defense ministry announced that German lawmakers approved an expansion of the Arrow 3 missile defense system deal, increasing its value from $3.5 billion to $6.5 billion — the largest Israeli defense export in history. Germany aims to bolster its air defenses against potential threats from Russia.

Source: AP