Israel and Egypt signed a memorandum of understanding (MoU) last week aimed at exporting LNG to the European Union (EU).
This framework deal will be the first that allows significant exports of Israeli gas to Europe, according to Israel's energy ministry.
Under the MoU, the EU will encourage European companies to participate in Israeli and Egyptian exploration tenders, the ministry said.
Some Israeli gas is already shipped by pipeline to Egyptian liquefaction plants on the Mediterranean coast, from where it is re-exported as LNG.
Officials, talking with newswires, said that they expect Egyptian LNG shipments to Europe to increase under this agreement, but they also said, it would probably take a couple of years.
Egypt also produces gas, but exports were limited by rising domestic demand.
"Egypt and Israel make a commitment to share our natural gas with Europe and to help with the energy crisis," Israeli Energy Minister, Karine Elharrar said after the signing of the MoU in Cairo.
Egypt exported 8.9 bill cu m of LNG last year and 4.7 bill in the first five months of 2022, according to Refinitiv Eikon data, the majority going to Asia.
In the next few years, Israel is on course to double gas output to about 40 bill cu m a year, as it expands projects and brings new fields online, industry officials told Reuters.
The EU imported 155 bill cu m of gas from Russia last year, accounting for about 40% of the bloc's overall consumption, which needs replacing.
The MoU was signed as Egypt hosted the East Mediterranean Gas Forum, a group established in 2020 that aims to boost gas trades between regional states, including Israel, Greece, Cyprus and Jordan, and during a visit to Cairo by European Commission (EC) President, Ursula von der Leyen.
