In a recorded statement, Netanyahu said the total value of the deal was estimated at about 112 billion shekels, roughly $34 billion, with 58 billion shekels, about $18 billion, expected to flow into state coffers.

At the same time as Netanyahu's announcement, NewMed Energy reported to the Tel Aviv Stock Exchange that it had received approval to export natural gas to Egypt. The authorization, granted by the Energy Ministry, allows the implementation of the export agreement signed in August, which is valued at approximately $35 billion.

As part of the approval, assurances were given that Israel would maintain attractive domestic natural gas prices and that gas supplies to the local market would be secured. The decision also paves the way for a final investment decision on the expansion of the Leviathan gas field, a move expected to significantly increase production capacity from the reservoir.

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In response, US Energy Secretary Chris Wright called off his his planned visit to Israel, which had been scheduled as part of efforts to advance the $35 billion agreement.

The American energy giant Chevron, a key partner in the Leviathan gas field, has in recent weeks exerted heavy pressure on Prime Minister Benjamin Netanyahu and on Cohen to finalize the ratification. However, the energy minister, who had been expecting Wright's visit, decided to postpone it for now due to several unresolved issues that require further clarification between Jerusalem and Cairo.

In recent days, the US administration has mounted significant pressure on senior Israeli officials, including Cohen and the prime minister, to approve the gas export deal to Egypt.

Cohen, for his part, insisted that gas prices for the Israeli market remain competitive. As negotiations have yet to be concluded, he refused to authorize exports until that matter is settled. At the same time, efforts have been underway to resolve the diplomatic disputes between Israel and Egypt.

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Delek Drilling has finalized a deal to sell its 22% stake in the east Mediterranean Tamar gas field to Abu Dhabi's Mubadala Petroleum for about $1 billion, the Israeli company said on Thursday.

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Delek said it is the biggest commercial deal to be signed between Israeli and Emirati groups since Israel and the United Arab Emirates normalized ties last year. A preliminary agreement was reached in April but it required government approval.

The Tamar field is one of Israel's primary energy sources and can produce 11 billion cubic meters of gas a year – enough to cover much of the Israeli market as well as exports to Egypt and Jordan.

Delek Drilling, a unit of conglomerate Delek Group, holds a 22% stake in the field, which is operated by Chevron.

Mubadala Petroleum, a unit of Abu Dhabi government-owned Mubadala Investment Company, said the acquisition "will complement Mubadala Petroleum's gas-based portfolio strategy in line with its energy transition goals".

Delek also holds a significant stake in the even larger Leviathan gas field nearby and is selling its Tamar holdings to comply with government moves to open the market to more competition.

"A huge deal with a company from the United Arab Emirates, alongside exporting gas to Eygpt and Jordan, are actions on the ground and exactly how to build a new Middle East," said Delek Drilling CEO Yossi Abu.

‏"This transaction marks a milestone in the alignment between Israel and the UAE following the Abraham Accords Peace Agreement signed between the two countries in 2020," said Abu.

‏"On completion, the deal will represent one of the largest transactions between an Israeli entity and an Arab entity, which shows how Israel's natural gas resources can be a source of collaboration between nations. This is yet another pivotal brick to the wall of friendship and collaboration Delek Drilling has been building in the region.

"Our focus right now in Delek Drilling is on the expansion of our mega Leviathan reservoir and on creating new markets in the region and beyond for our produced natural gas," he added.

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Israel's efforts to shift to natural gas have saved its economy 78.6 billion shekels ($24 billion) since 2004, a report published by the Energy Ministry on Monday shows.

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According to data, in 2020 alone the total consumption of natural gas (including export) increased by a whopping 24%.

The report attributed the boost to the increased amount of natural gas that Israel exports to its neighboring countries from the Leviathan offshore gas field that began commercial production of gas at the beginning of 2020.

In 2012, most of Israel's electrical power was generated from coal, and some from diesel fuel and fuel oil, but by 2020, electrical power generated from natural gas was twice the amount from coal. The use of diesel fuel and fuel oil to power the electric grid became almost obsolete by 2020, the report said.

The Natural Gas Authority said that the drastic drop in gas prices due to the outbreak of the coronavirus pandemic has had an adverse effect on the industry. It also said the overall positive impact of natural gas on the economy was even greater because of the environmental benefits.

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The deal makes Chevron the first major oil company to enter Israel.  Chief Executive Officer Mike Wirth told Reuters: "We certainly are mindful of the fact that there are political differences and tensions" between Israel and neighbors where Chevron also has business, including Saudi Arabia, Kuwait, Qatar, and the Kurdish region of Iraq.

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He said Chevron was "apolitical" and "a commercial actor" in the region. "We engage with all of our different stakeholders as we go through something like this," Wirth said, declining to detail the timing of discussions with partner governments.

Israeli Energy Minister Yuval Steinitz called the deal "a tremendous expression of confidence in the Israeli energy market."

The Israeli assets "will rebalance the portfolio towards gas and provide a springboard" in the region, said Tom Ellacott, senior vice president at Wood Mackenzie.

The purchase boosts Chevron's investments in US oil shale and gives it Noble's flagship Leviathan field off the shore of Israel, the largest natural gas field in the eastern Mediterranean.

Oil companies are under pressure to reduce their carbon footprint. Gas is seen as a cleaner-burning fuel.

The oil price crash has decimated shares of many energy companies, making them attractive targets for those that have weathered the downturn and have the resources to buy. Chevron ended the first quarter with a cash pile of $8.5 billion after withdrawing a $33 billion bid for Anadarko last year and then being among the first big oil companies to slash spending during the downturn.

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Residents of northern Israel reported a loud blast at 3:40 a.m., and Homeland Guards, an Israeli watchdog group monitoring Israel's offshore gas platforms, posted a video showing a massive flame visible from shore illuminating the night sky.

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The ministry said in a statement that the malfunction at the Leviathan gas field required operators to expel and ignite natural gas from the rig, resulting in the flame. The platform is located about six miles off Israel's Mediterranean coast. The ministry said it would investigate the incident.

Israel began preliminary pumping from the Leviathan undersea gas field to a rig just off the coast in December, and started exporting natural gas to neighboring Egypt last month.

Local environmental activists had called on Delek Drilling and its American partner, Noble Energy, to move the platform farther offshore out of fears of hazardous substances contaminating the air and water.

According to the group, Tuesday's incident was the eighth time operators have burned off natural gas since operations began at the offshore rig.

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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.

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The supplies, from Israel's largest offshore natural gas field Leviathan, have begun for an experimental three-month period, according to the terms of a $10 billion deal NEPCO struck with Noble Energy Inc in 2016, the state-owned power utility said in a statement.

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"The experimental pumping will continue for three-months under the technical and contractual terms between the two sides," said the statement by NEPCO which was released in state media with no further details.

Under the agreement, the US-Israeli consortium will supply Jordan gas for 15 years from the field in the Mediterranean.

The deal has faced opposition in Jordan where many view Israel as an erstwhile enemy. Activists and parliamentarians have lobbied the government for years with little success of scrapping the purchase.

"It's a black day in the history of Jordan and a crime against the nation and a national catastrophe that makes our sovereignty hostage and the energy sector in the hands of the Zionist occupation," said the mainstream Islamic Action Front, the country's main political opposition.

A pipeline that goes to the north of the country distributes the gas to the country's power plants for electricity generation.

The amount of gas extracted from Leviathan is expected to reach 60 billion cubic meters over 15 years, while the nearby Tamar field will export 25.3 billion cubic meters in the same period. The value of the exports is estimated at $19.5 billion.

The discovery of Leviathan in 2010 helped turn Israel into a potential energy exporter, further positioning it as a major player in the global energy market.

The Leviathan partners have already signed major, multibillion dollar export deals with Egypt which will begin importing Israeli gas by mid-January.

The Jordanian government said after the agreement was signed that securing stable energy prices for the next decade can achieve annual savings of at least $500 million annually and help reduce a chronic budget deficit.

Energy-dependent Jordan imports about 95% of its energy needs with demand for electricity that rises by 6% to 7% annually.

Jordan, which has a peace treaty with Israel, has pushed through the deal despite the popular opposition by politicians and many deputies in parliament who say it makes the kingdom dependent on its neighbor for energy.

Amman has in recent months kept quiet over the clauses of the deal in the face of public opinion and vocal parliamentary opposition that demands the agreement be canceled.

The authorities say this was an agreement between companies rather than governments and denies that Washington has pressured Amman not to give in to public pressure.

Activists say they plan a protest next Friday, one of several that have been staged in recent years as part of a movement that opposes any attempt to normalize ties with Israel.

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Leviathan, discovered in 2010 roughly 130 kilometers (81 miles) west of Haifa, holds an estimated 22 trillion cubic feet of natural gas. The field was the world's largest offshore discovery of the past decade.

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The Environmental Protection Ministry said that Texas-based Noble Energy, which operates Leviathan, was given the go-ahead after a review of its operations found it has held up to all required conditions.

Noble Energy's CEO David Stover issued a statement saying, "This is a historic day for Noble Energy and our partners. The safe and successful execution of the initial phase of development has been world-class, continuing our exceptional track record in major project delivery. Noble is proud of the benefits our discoveries have brought and will bring to the region."

Residents who live close to the beach oppose the rig's operations, saying it will significantly increase air pollution along the nearby coastline.

Both the Environmental Protection Ministry and Nobel Energy stressed that "activities carried out on the platform do not impact routine life."

Leviathan gas exports to neighboring countries are expected to begin in the coming weeks.

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S&P first upgraded Israel's rating to its current one – the highest rating awarded to the Jewish state to date – in August 2018, and reaffirmed it in February.

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In its report, S&P noted it was not "overly concerned" by Israel's substantial fiscal deficit of 53 million shekels (roughly $15 million) – 3.8% of the gross domestic product, despite its exceeding the government's deficit goal of NIS 40 million ($11 million), or 2.9% of the GDP.

This is the second consecutive year in which the ratio of debt to GDP has increased, but according to the agency, there is a consensus among Israeli politicians of the need to maintain a responsible fiscal policy, as demonstrated by the Finance Ministry's plans to impose a NIS 1.15 billion ($329 million) lateral budget cut on all government ministries between 2019 and 2021.

In Friday's research note, S&P stated Israel's economy is showing continued strong growth, which the firm expects to weather the current political instability. The report further said that the strengthening shekel –bolstered further by Bank of Israel Governor Amir Yaron's recent decision to maintain the key interest rate at 0.25% – was unlikely to harm Israeli exports.

S&P further cited as reasons for its decision the fact that the Israeli economy has grown for 15 consecutive years, the low unemployment rate (3.6%), and the fact that Israel's high tech industry is enjoying peak investment.

The agency did, however, warn that the prolonged political turmoil caused by having two general elections within six months of each other, was preventing the government from dealing with fundamental issues, such as lagging investment in infrastructure, excessive bureaucracy, and the challenge of integrating the ultra-Orthodox and Arabs sectors into the workforce.

Other potential threats to Israel's international credit score are the security threats from the Gaza Strip, Syria, and Iran.

Still, the agency lauded Israel's economy as "diversified, competitive, and resilient," saying it is expected to grow annually by 3% on average until 2022.

"Growth will stem from private consumption on the back of a strong labor market, continued corporate investment activity" and Israel's strong services export, S&P wrote.

The fact that the Leviathan offshore gas field is expected to become fully operational in 2020 will boost the economy further, the agency said.

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