Egypt says gas deal with Israel is ‘purely commercial’

Egypt has claimed that Cairo’s agreement to supply Israel with natural gas is “purely commercial” and lacks any “political dimensions.”

Private energy companies struck the deal, according to Egypt’s State Information Service (SIS) on Thursday, without the government’s involvement.

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The transaction is a purely commercial transaction that was concluded with the sole exception of any political connotations or understandings, according to SIS chief Diaa Rashwan’s statement.

Egypt is now the only regional hub for gas trading in the Eastern Mediterranean, according to Rashwan, who stated that the agreement has a clear strategic benefit from strengthening its position there.

Egypt’s announcement came after Israeli Prime Minister Benjamin Netanyahu announced the gas deal’s signing on Wednesday night and called it “the biggest gas deal in Israeli history.”

The largest gas deal in the history of Israel was approved today. The deal is worth 112 billion shekels]$34.7bn]. During a televised address in Israel, Netanyahu and energy minister Eli Cohen announced that 58 billion shekels [$18 billion] will go to the state’s finances.

Netanyahu continued, “The agreement is with the American company Chevron and with Israeli partners who will supply gas to Egypt.”

In August, Israel and Chevron and its partners had signed an export agreement that would have allowed them to supply Egypt with up to $35 billion in gas from the Leviathan natural gas field.

However, a report from the newspaper Israel Hayom claimed that Netanyahu had advised him to halt negotiations with Egypt in September. Israel is alleged to have “violated the peace treaty” that Egypt and Cairo have signed through military exercises in Sinai, a claim Egypt has refuted.

Following the Camp David Accords of 1978, Egypt and Israel signed a peace treaty on March 26, 1979, in Washington, D.C. The key objectives of the agreement include putting an end to the state of war, normalizing relations, allowing Israeli soldiers and civilians to completely leave the Sinai Peninsula, and maintaining demilitarization.

Netanyahu’s announcement on Wednesday regarding the gas deal comes as US President Donald Trump has been attempting to arrange a meeting between Netanyahu and Egyptian President Abdel Fattah el-Sisi, according to CNN.

The leaders have had trouble with one another’s communication, and they haven’t spoken publicly in years.

After Israel began its genocide in Gaza, tensions grew even more acute.

Egypt has been a vocal critic of Israel’s actions in Gaza and was instrumental in facilitating a ceasefire there.