Prime Minister Benjamin Netanyahu and Energy and Infrastructure Minister Eli Cohen on Wednesday announced the approval of what they described as the largest natural gas deal in the history of the State of Israel, with a total scope of NIS 112 billion (approximately $35 billion).
Addressing the public, Prime Minister Netanyahu said, "Dear citizens of Israel, today I approved the largest gas deal in Israel's history. The scope of the deal stands at NIS 112 billion. Out of this, NIS 58 billion will go to the state treasury."
Netanyahu detailed the expected timeline of state revenues, emphasizing the long-term impact of the agreement. "Initially, in the first four years, we will receive about half a billion shekels for the state treasury," he said, noting that during this period the companies involved will be making "massive" infrastructure investments, including pipeline expansion.
"Afterward, it begins to rise," the Prime Minister continued, "and within a few years, it reaches NIS 6 billion every year for the state treasury. This money will strengthen education, health, infrastructure, security, and the future of coming generations."
Netanyahu said the agreement involves the American company Chevron together with Israeli partners, and includes the supply of natural gas to Egypt. "I approved the deal after ensuring our security interests and other vital interests, which I will not detail here in full," he said.
According to the Prime Minister, "This deal greatly strengthens Israel's status as a regional energy power and contributes to stability in our region." He added that it would encourage additional investment in gas exploration in Israel’s economic waters. "More gas will be found," Netanyahu said, stressing that "first and foremost, this deal obligates the companies to sell gas at a good price to you, the citizens of Israel."
Netanyahu also referred to past opposition to Israel’s natural gas development. "There were those among us who fiercely opposed taking the gas out of the water," he said. "They said we would destroy the Israeli economy." He added, "Today, it is clear that extracting the gas from the depths of the sea has brought a massive blessing to the State of Israel."
Calling the current agreement a continuation of that policy, Netanyahu said, "The persistence of myself and then-Finance Minister Yuval Steinitz, our insistence on extracting the gas, has proven itself beyond all expectations. And I promise you, it will be the same with this deal."
The Prime Minister thanked Energy Minister Cohen for his role in the negotiations. "You persisted and fought in very tedious and firm negotiations on our behalf," Netanyahu said, also expressing gratitude to Cohen’s team and others involved.
Concluding his remarks, Netanyahu linked the announcement to the holiday of Hanukkah. "This evening is the fourth night of Hanukkah, and on this day, we have brought an additional jar of oil to the people of Israel," he said. "But this time, the flame will burn not just for eight days, but for decades to come. Happy Festival of Lights, citizens of Israel."
Energy and Infrastructure Minister Eli Cohen described the approval as "a historic moment for the State of Israel, both in the security-diplomatic sphere and the economic sphere."
"This is the largest export deal in the history of the country, totaling NIS 112 billion," Cohen said, adding that "the deal establishes our status as a regional energy power and a leader that its neighbors rely upon."
Cohen said the agreement was approved only after months of negotiations and safeguards. "The approval of the agreement comes after several months of intensive negotiations, and only after we had secured Israel's security and economic interests," he stated.
Detailing the financial impact, Cohen said, "The state’s revenues from taxes and royalties thanks to the deal will stand at approximately NIS 58 billion, and the scope of direct infrastructure investments in the economy will exceed NIS 16 billion." He added that the investments "will create jobs and strengthen the economy."
Cohen emphasized that the agreement prioritizes domestic needs. "This is the first export approval that guarantees priority for the local market," he said, noting that mechanisms were agreed upon "that will improve the price of gas for the Israeli market."
Calling natural gas "a strategic asset for the state," Cohen addressed the Prime Minister directly. "Prime Minister, you resolutely led the Gas Framework exactly a decade ago, and today we are reaping the fruits," he said. "We will continue to work toward bringing in additional local and international companies to invest in Israel."
The minister concluded by thanking senior officials and partners involved in the process, including Director General of the Ministry of Energy Yossi Dayan, Director of the Natural Resources Administration Chen Bar-Yosef, Head of the Gas Authority Moshe Garazi, and officials from the Finance Ministry who participated in the negotiations.