Cairo, Egypt — Egyptian authorities confirmed on Thursday a major deal to import natural gas from Israel, saying the agreement had nothing to do with politics and served a strategic interest for the country.
“The deal is a purely commercial transaction concluded exclusively on the basis of economic and investment considerations, and does not involve any political dimensions or understandings whatsoever,” said Diaa Rashwan, the head of Egypt’s State Information Service, a government media office.
“The agreement serves a clear strategic interest for Egypt by strengthening its position as the sole regional hub for gas trading in the Eastern Mediterranean,” Rashwan added in a statement.
Egypt and Israel have had formal ties for decades, but popular opinion in Egypt remains largely critical of cooperation with Israel, particularly in the wake of the latest Gaza war.
Israeli Prime Minister Benjamin Netanyahu announced he had approved the deal worth nearly $35 billion on Wednesday, calling it the largest of its kind in Israel’s history.
The announcement came as negotiations for the second phase of the Gaza ceasefire deal, which Cairo helped broker, have faltered amid reports of truce violations.
Rashwan said “the timing of the announcement does not alter the fact that the deal is the outcome of commercial negotiations concluded earlier in accordance with market principles”.
Under the agreement, Israel will increase the total volume of gas supplied to Egypt to 130 billion cubic metres, according to Israeli firm NewMed Energy which announced the deal in August.
Egypt has struggled with energy supplies in recent years, having sought to both meet its domestic needs and position itself as a regional energy hub.
Egypt was the first country in the region to sign a peace deal with Israel in 1979, and the two countries have since had decades of close security collaboration, but relations are often described as a “cold peace”.
Egypt has walked a diplomatic tightrope throughout the Gaza war, condemning Israel’s military campaign while maintaining its role as a mediator and trying to subdue public displays of anger over the war domestically.
When gas supplies were cut early in the Gaza war, Egyptian officials avoided naming Israel, saying the ensuing shortages were a result of issues “in a neighboring country”.
According to diplomatic sources, Cairo has for years stalled the confirmation of a new Israeli ambassador, in part to skirt anger in the country, which has a long history of solidarity with Palestinians.
Rashwan said on Thursday that “Egypt’s position on the Palestinian cause is firm and unwavering”, praising the country’s peace efforts.
