UAE-backed Israeli gas deal with Egypt valued at $20 billion

QUDS, July 28 (YPA) – The Israeli company Isramco and UAE-based Mubadala Energy have signed a non-binding memorandum of understanding (MOU) with an Egyptian gas importer to supply natural gas from the Tamar offshore field, in a deal that could be worth approximately $20 billion.

Under the proposed agreement, up to 80 billion cubic meters (bcm) of natural gas would be supplied between 2031 and 2038, with an option to extend the contract through 2043, subject to the renewal of the field’s production license.

If finalized, the agreement would rank among the largest natural gas export deals in the Eastern Mediterranean in the coming years.

According to the energy publication MEES, Isramco holds a 28.75% stake in the Tamar field, while Mubadala Energy, owned by the Abu Dhabi government, owns 11%. other partners—including Chevron, Tamar Petroleum, Union Energy, and Dor Gas—are expected to join the final agreement.

The MoU stipulates that gas pricing will be linked to Brent crude prices, with a minimum price floor, and will include take-or-pay provisions, in line with previous gas export agreements from the Tamar and Leviathan fields to Egypt.

MEES estimates the agreement assumes an average gas price of around $7 per million British thermal units (MMBtu) over the supply period, below the average $7.60/MMBtu Egypt paid for imports from the Tamar and Leviathan fields in 2025.