Gas deal with Israel will bring Egypt major rents
Significance Increased gas production has encouraged Egyptian firms to seek out new partnerships. The main developers of Israel's Leviathan and Tamar gas fields and an Egyptian firm are finalising a scheme to buy a majority stake in the company that owns the controversial pipeline connecting Israel and Egypt. The purchase, expected to be completed within the coming weeks, would unlock a 15-billion-dollar deal to export Israeli gas to Egypt over ten years and move Egypt one step closer to becoming a regional energy hub. Impacts The gas deal and recent energy liberalisation measures will further concentrate power in the hands of the military-backed government. International firms looking to capitalise on lucrative gas opportunities will share profits with military-led authorities. The partnership will strengthen ties between Egypt and Israel, which are already cooperating on security operations in the Sinai Peninsula. The government will control any popular opposition to the deal.