JERUSALEM, Dec 17 (Reuters) - Israel has approved a deal

that will supply natural gas to Egypt, Israeli Prime Minister

Benjamin Netanyahu said on Wednesday, describing it as the

country's "largest ever" gas deal.

Israel signed the export agreement in August, to supply up to

$35 billion of gas to Egypt from the Leviathan natural gas

field.

"I have today approved the largest gas deal in Israel's

history. The deal is for 112 billion shekels ($34.67 billion),"

Netanyahu said in a televised statement. "This deal with the

American Chevron company, with Israeli partners, will supply gas

to Egypt."

He added that the deal, which had been held up over some

outstanding issues, would help secure stability in the region.

It should ease an energy crisis in Egypt, which has spent

billions of dollars on importing liquefied natural gas since its

own supplies fell short of demand.

Egypt's production began declining in 2022, forcing it to

abandon its ambitions to become a regional supply hub. It has

increasingly turned to Israel to make up the shortfall.