Operators of Israel’s Tamar and Leviathan offshore fields have signed agreements to supply $15 billion worth of gas to Egyptian consumers over 10 years, raising hopes for the eventual resumption of exports from Egypt’s idle liquefied natural gas facilities.

The deals also highlight growing strategic ties between the two countries under Egypt’s President Abdel-Fatah El-Sisi, who has been in power since 2013.

Israel’s Delek Drilling and Houston-based Noble Energy, along with their smaller partners in the two fields, are to supply the gas to privately-owned Egyptian company Dolphinus.

The agreements — one for natural gas from Leviathan and one for Tamar — each provide for total contract quantities of 1.15 trillion cubic feet of natural gas.

Both need regulatory approval from the Israeli and Egyptian governments.

Israel has been very keen to make full commercial use of its resources, while Cairo has amended laws to allow the private sector to import Israeli gas.

Noble said supplies will be sold to domestic users in Egypt, including the industrial and power generation sectors.

"Sales volumes under the agreement associated with the Leviathan field are anticipated to begin at a firm rate of approximately 350 million cubic feet of natural gas per day at the start-up of the Leviathan project at the end of 2019," Noble said.

"For the Tamar agreement, sales volumes are anticipated to begin at an interruptible rate of up to 350 MMcfd, dependent upon gas availability beyond existing customer obligations in Israel and Jordan."

The company added that it "will have an option to convert the Tamar interruptible quantity to a firm-basis with a significant take or pay commitment".

Both contracts are for a 10-year term, according to Noble.

Israel will now be providing both Egypt and Jordan with natural gas, cementing ties with its two Arab neighbours.

Israeli Prime Minister Benjamin Netanyahu described the export deal as a joyous day.

“Many did not believe in the gas outline,” he said. “We led it forward with the knowledge that it would strengthen our security, strengthen our economy, strengthen regional relations, and above all, it would strengthen the citizens of Israel.”

To transfer the gas, the companies are looking at various pipelines, including the existing pipeline of East Mediterranean Gas (EMG), which runs parallel to the Gazan shore.

Delek and Noble plan on negotiating with EMG for use of that pipeline.

The bankrupt EMG has been mired in arbitration with Egypt for years after a previous gas deal supplying Israel with Egyptian gas fell through amid gas shortages and terrorist attacks on the route following the 2011 Egyptian revolution.

The second option would be to send the gas through the existing Pan Arabian pipeline via Jordan. A third plan would see a pipeline built through the Negev desert.

Noble Energy chief executive Gary Willingham said: "These agreements continue to demonstrate the strength of the regional market for our natural gas in the Eastern Mediterranean.

"At Leviathan, we have executed agreements totalling nearly 900 MMcfd and are closing in on our targeted sales volume amount of 1 Bcfd. For Tamar, we now have a contract to sell any excess gas beyond current customer needs in Israel and Jordan to Egypt. "

Israeli exports and rising gas production in Egypt are likely to free up supplies for exports through the Idku and Damietta LNG plants along Egypt’s Mediterranean coast.

The plants, controlled respectively by Shell and Spain’s Union Fenosa, were forced to halt exports after the revolution.

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Israel and Egypt sign $15 billion gas deal