Chevron Launches $35 Billion Gas Pipeline Project to Egypt
U.S. energy giant Chevron has signed a groundbreaking agreement with Israel Natural Gas Lines to begin construction of the Nitzana natural gas pipeline, a critical infrastructure project that will transport gas from Israel’s massive Leviathan field to energy-starved Egypt as part of a $35 billion export deal.
The ambitious pipeline project represents a major step in easing Egypt’s ongoing energy crisis, as the Arab world’s most populous nation has spent billions importing liquefied natural gas to meet domestic demand. Once completed in approximately three years, the Nitzana route will transport around 600 million cubic feet of natural gas daily, boosting Israel’s total export capacity to Egypt to more than 2.2 billion cubic feet per day.
The Leviathan gasfield, jointly owned by NewMed, Chevron, and Ratio Energies, contains massive reserves of approximately 600 billion cubic meters of natural gas. The field’s owners recently finalized the $35 billion export agreement with Egypt, marking one of the largest energy deals in the region’s history.
Gas producer Energean has announced plans to utilize the new pipeline infrastructure, committing to send up to 2 billion cubic meters of gas annually from its Katlan field offshore Israel, which is scheduled to begin production in 2027. This additional capacity will further strengthen the energy partnership between the two nations.
The project comes as Egypt continues its efforts to secure long-term energy supplies and reduce its dependence on costly LNG imports. The pipeline will provide Egypt with a reliable, cost-effective source of natural gas while offering Israeli producers access to a major regional market. The Nitzana pipeline represents part of a broader initiative to expand Israeli gas exports throughout the region, leveraging the country’s significant offshore discoveries to meet growing energy demands across the Middle East and North Africa.
Source: oedigital.com
