Nitzana Pipeline: Strategic Energy Link Between Israel and Egypt

Introduction

Egypt has finalized a landmark agreement with Israel for the construction of the Nitzana pipeline, which will deliver 600 million cubic feet per day of natural gas from Israel’s Leviathan field. Valued at around $35 billion, the initiative is designed to relieve Egypt’s domestic energy shortages, cut reliance on costly LNG imports, and reinforce Cairo’s ambition to serve as a regional energy hub.

Energy Security for Egypt

Persistent power cuts and natural gas deficits have weakened Egypt’s economy and strained public services in recent years. The new pipeline will provide a steady supply to stabilize the national grid and secure fuel for industrial users. By reducing the need for LNG imports, Cairo is expected to save precious foreign currency reserves and redirect funds toward pressing economic reforms.

Strategic Benefits for Israel

For Israel, the deal guarantees a long-term market for Leviathan gas while strengthening its position as a reliable energy exporter in the eastern Mediterranean. The infrastructure also provides a gateway to European buyers through Egypt’s LNG terminals at Idku and Damietta, further embedding Israel into the regional energy architecture.

Regional and Geopolitical Impact

The project cements Israel–Egypt cooperation, already anchored by decades of security coordination in the Sinai. It enhances Egypt’s role as a pivot in the EastMed Gas Forum while offering Europe an alternative supply route in its diversification away from Russian gas. The involvement of Chevron highlights U.S. strategic interest in advancing regional energy integration as a stabilizing factor in the Middle East.

Outlook

The Nitzana pipeline goes beyond energy economics. It is a strategic instrument of diplomacy and regional stability, binding Egyptian and Israeli interests in a durable framework. If managed effectively, it could provide Cairo with the resources and leverage needed to consolidate its role as a Mediterranean energy hub, while giving Israel a sustained outlet for its reserves.