In a historical first on Wednesday, Israel began exporting natural gas to Egypt, launching one of the most important deals to have been signed by the neighbors since they made peace decades ago.
Under the landmark deal, a private firm in Egypt, Dolphinus Holdings, will purchase 85 billion cubic meters (bcm) of gas, worth an estimated $19.5 billion, from Israel's Leviathan and Tamar offshore fields over 15 years.
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In Cairo on Wednesday morning, Energy Minister Yuval Steinitz and his Egyptian counterpart, Tarek El-Molla, announced the commencement of the gas flow.
In a joint statement, the two energy ministers said the step was an "important development" and added that it would "serve the interests of both sides."
Israel and Egypt signed the permit to export natural gas to Egypt in December 2019. At the time, Steinitz called the permit a "historic landmark" for Israel. The deal also enables Israel to transport its natural gas to Europe through Egyptian liquefied natural gas factories.
Yossi Abu, CEO of Israel's Delek Drilling, one of the partners in Leviathan and Tamar, said the arrangement "marks a new era in the Middle East energy sector."
The gas is being supplied via a sub-sea pipeline connecting Israel and Egypt's Sinai Peninsula.
Israeli officials have called the export of gas the most significant deal to emerge since the countries signed a historic peace treaty in 1979.
In early January, Texas-based Noble Energy began pumping the first supplies of Israeli gas to Jordan for an experimental three-month period.
