Egypt has described its recent natural gas agreement with Israeli and U.S. companies as a commercial transaction without political implications.
In a statement Thursday, Egypt’s State Information Service (SIS) said the deal was made by private energy companies under market rules and without government involvement.
“The deal is a purely commercial transaction concluded on the basis of strictly economic and investment considerations, and entails no political dimensions or understandings of any kind,” SIS chief Diaa Rashwan said.
Rashwan added that the agreement supports Egypt’s goal of becoming the regional hub for gas trading in the Eastern Mediterranean.
The statement followed Israeli Prime Minister Benjamin Netanyahu’s televised announcement on Wednesday approving the gas agreement, which he described as “the largest gas deal in Israel’s history.”
“Today, I approved the largest gas deal in Israel’s history. The deal is worth 112 billion shekels [$34.7 billion]. Of this total, 58 billion shekels [$18 billion] will go to the state coffers,” Netanyahu said, speaking alongside Energy Minister Eli Cohen.
According to Netanyahu, the agreement is with U.S.-based Chevron and Israeli partners to supply gas to Egypt from Israel’s Leviathan natural gas field. Israel signed the export agreement in August, with a value of up to $35 billion.
However, Israel Hayom reported that in September Netanyahu ordered the deal not to proceed without his personal approval. That directive followed Israeli allegations that Egypt had violated the 1979 peace treaty through military deployments in the Sinai Peninsula, which Egypt denied.
The 1979 peace treaty, signed in Washington, ended hostilities between Egypt and Israel. Key provisions included Israel’s full withdrawal from Sinai and maintaining the region as a demilitarized zone.
