Chevron logo is seen in this illustration taken, October 23, 2023.
The Nitzana pipeline is designed to help address Egypt’s energy needs. In recent years, Egypt has spent significant amounts on importing liquefied natural gas. The project is also part of broader plans to increase Israeli natural gas exports to Egypt, the most populous country in the Arab world.
In August, the partners of the Leviathan field finalized a $35 billion deal to export gas to Egypt. Leviathan is jointly owned by NewMed (NWMDp.TA), Chevron, and Ratio Energies (RATIp.TA). The field contains an estimated 600 billion cubic meters of gas reserves, making it one of the region’s most significant natural gas assets.
Chevron stated that the Nitzana pipeline will have the capacity to transport about 600 million cubic feet of natural gas per day once construction is completed, which is expected in about three years. This will increase Israel’s total gas export capacity to Egypt to more than 2.2 billion cubic feet per day.
In addition to Leviathan, other producers are also planning to use the Nitzana route. Energean (ENOG.L) announced it intends to send up to 2 billion cubic meters of natural gas annually from its Katlan field offshore Israel. Production from Katlan is scheduled to begin in 2027, aligning with the expected operational timeline of Nitzana.
Industry observers note that the new pipeline will strengthen long-term gas trade between Israel and Egypt, building on existing infrastructure. The agreement highlights the role of natural gas in meeting growing regional energy demand and in reducing Egypt’s reliance on costly LNG imports.
Chevron emphasized that the project would serve as a stable supply route and contribute to broader regional energy security. The development of the Nitzana pipeline, alongside major export agreements, reflects the continued expansion of the Eastern Mediterranean’s natural gas sector and its integration into neighboring markets.
Overall, the deal underlines the importance of Leviathan as a key energy source and shows the commitment of its partners, including Chevron, NewMed, and Ratio Energies, to long-term supply arrangements. Energean’s planned participation through Katlan further demonstrates the potential of multiple producers to utilize the infrastructure once operational.
