As Israel Stalls Mega Deal Qatar Offers to Sell Egypt Unlimited Gas.

December 2025: Amid intensified pressure from the United States, Israel has signed a deal with US energy giant Chevron, a partner in the Leviathan field. This has resulted Israel cancelling the massive $35 billion deal with Egypt. However, this cancellation has not affected Egypt’s gas supply, as Qatar has come forward with an agreement, announced in August, would almost triple Egypt’s imports from the Leviathan gas field but has since been held up by internal disputes in Israel and political tensions between the two countries.

Amid the standoff, Qatar has stepped in with an offer to sell Egypt as much gas as it wants to buy, a source in Egypt’s oil ministry. The Qatari Government is aiming to diversify its suppliers and avoid dependence on a single country, the official said.

Egypt has become increasingly reliant on Israeli gas to meet its energy needs amid falling domestic production and rising demand. It currently imports around 4.5 billion cubic metres a year from the Leviathan field under a deal signed in 2018. The new agreement would see it purchase around 130 billion cubic metres between 2026 and 2040, rising to as much as 12.5 billion cubic metres a year by 2033.

Amid the delays, Egypt has signed a $4 billion gas deal with US energy firm Hartree Partners, as well as agreements with Saudi Aramco and commodity traders Trafigura and Vitol. An Egyptian official recently told Israeli business outlet Globes that Cairo is “angry” with the delay and floated the prospect of buying from Qatar. “Israel is not the only market. There is also Qatar, the US and others”, the official said.

Israel’s energy minister has vowed to block the deal “until Israeli interests are secured”, though reports in Israeli media this week suggested that it could soon be approved. The deal which is the largest in Israel’s history has been held up amid concerns about its impact on Israel’s energy security and electricity prices. Israel is expected to become increasingly dependent on natural gas in the coming years, fuelling debate about how much of its energy resources should be exported.

Geopolitical tensions have also presented a roadblock to the deal, with relations between the two countries reaching their lowest ebb in years due to Israel’s war on Gaza.

Cairo and Tel Aviv have traded accusations of violating the 1979 peace treaty after Israeli forces seized control of the Philadelphi Corridor on the Gaza border and Egypt reinforced its military presence in the Sinai Peninsula. Egypt has also been alarmed by threats issued by ministers in Netanyahu’s far-right government to expel Palestinians into the Sinai.

Despite the tensions, Egypt has maintained energy and economic ties with Israel.

Team Maverick.