Israel will export more natural gas to Egypt from its Tamar field in the Mediterranean, a decision that will increase national revenue and strengthen ties with its neighbor, according to Israeli Energy Minister Israel Katz. 

The new export permit is for 3.5 billion cubic meters per year for about 11 years, or 38.7 bcm, with an option to increase the total to 44 bcm depending on future production, the ministry said in a statement. The original export request was for 60 bcm.

The new exports are contingent on Tamar’s gas output growing by 6 bcm per year — a 60% increase from the annual amount produced today — starting in 2026, the ministry said. The expansion is currently awaiting a final investment decision from the field’s operators, and will be accomplished by adding a third transmission line from the Tamar wells to the production rig, as well as equipment upgrades. 

Even with the increased exports, the gas produced should still be enough to last the local market through 2048, the ministry said.

Israel has been ramping up shipments to its neighbors amid increased demand from the European Union, which is recovering from its worst energy crises in decades. The EU is seeking to secure more liquefied natural gas from the Middle East, the US and other regions for a future with virtually no pipeline gas from Russia, by far its biggest supplier before Moscow’s invasion of Ukraine.

Egypt, for its part, is aiming to boost its LNG exports by about 40% from 2025, with the bulk of the extra fuel shipments going to Europe. 

Israel’s gas industry has been a game-changer for the nation, bringing revenues of about 10 billion shekels ($2.7 billion) into the state’s coffers since 2004. The discoveries off the Mediterranean coast have put the country on the path toward greater energy independence, reshaping regional economic ties and assisting with the transition to renewable energy.

While supplies either from or through Egypt helped meet Europe’s demand, deliveries have virtually stopped in the summer amid high domestic demand. Egypt’s two LNG plants haven’t exported the fuel in June and so far in August and only made limited shipments in July, ship-tracking data on Bloomberg show.