The Times of Israel Daily Briefing Day 814 - Will $35 billion gas deal with Egypt hike electricity costs?
Dec 28, 2025
Sharon Wrobel, a tech editor focused on energy issues, delves into the $35 billion gas deal with Egypt, analyzing its potential impact on electricity prices and the pressures behind the agreement. She warns of possible gas shortages and rising costs as Israel navigates its energy policy. Also featured is Rossella Tercatin, an archaeology reporter who highlights a groundbreaking discovery of a Byzantine mold for pilgrim flasks, connecting it to historical lives and the ongoing debate about the existence of an Israelite kingdom.
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Export Deal Brings Forward Gas Shortage
- Israel's $35 billion gas export deal with Egypt accelerates domestic gas depletion by roughly a decade.
- That shift risks higher electricity prices and future dependency on imported, volatile gas markets.
Geopolitics And Market Power Drove Timing
- The deal materialized under combined pressure from the U.S. administration and dominant energy companies like Chevron.
- Limited alternative suppliers left Israel little bargaining power in negotiations.
Electricity Highly Vulnerable To Gas Exports
- Electricity in Israel is unusually sensitive to natural gas because over 70% of generation uses gas.
- Doubling Leviathan's production for exports therefore directly affects domestic electricity costs and long-term supply.