Leviathan is reputed to be one of the world’s largest deep-water gas discoveries. Credit: Igal Vaisman/Shutterstock.com.

Chevron, along with its partners in the Leviathan reservoir, has finalised a $610m, 15-year engineering, procurement and construction (EPC) contract with Israel Natural Gas Lines to construct a pipeline aimed at increasing natural gas exports to Egypt.

The planned 65km pipeline will connect Ramat Hovav in southern Israel to the Nitzana crossing on the Israeli-Egyptian border, reported the Times of Israel (TOI).

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The companies anticipate that construction will commence in the fourth quarter of 2025 and take approximately three years to complete, subject to regulatory approvals and final agreements, reported Themedialine.

The Nitzana export route is set to transport at least 600 million cubic feet of natural gas daily once construction is completed in 2028.

This development could elevate Israel’s total export capacity to Egypt to more than 2.2 billion cubic feet per day.

Chevron’s Eastern Mediterranean Business Unit managing director Jack Baker was quoted by the TOI as saying: “This milestone reflects Chevron’s commitment to advancing energy security in Israel and regionally.”

The agreement follows a $35bn (NIS117.07bn) deal announced in August to supply natural gas to Egypt, the largest export deal in Israel’s history.

The deal is expected to generate substantial revenue for Israel through gas royalties and taxes.

Leviathan, reputed to be one of the world’s largest deep-water gas discoveries, holds an estimated 600 billion cubic metres (bcm) of gas.

The Leviathan gas field’s other partners include NewMed Energy, which owns a 45.3% stake, and Ratio Oil with a 15% stake.

NewMed CEO Yossi Abu said: “Leviathan is a national project and its expansion is the anchor of Israel’s energy security for the coming decades.”

In 2024, Israel’s natural gas exports to Egypt and Jordan increased by more than 13% year-on-year, accounting for around 50% of Israeli gas production. State revenue from gas royalties rose by nearly 11% to a record NIS2.37bn in 2024.

Leviathan began supplying natural gas to the Israeli domestic market in December 2019 and started exports to Egypt in January 2020. To date, Leviathan has supplied 23.5bcm of gas to the Egyptian market. Israeli gas currently represents 15–20% of the total consumption in Egypt.