JERUSALEM, Dec. 17 (Xinhua) -- Israeli Prime Minister Benjamin Netanyahu said on Wednesday that he had approved a gas deal worth 112 billion shekels (about 34.7 billion U.S. dollars) under which Israel will supply natural gas to Egypt.

Under the deal, U.S. energy company Chevron, along with its Israeli partners, will supply Egypt with gas.

Calling it the "largest gas deal in Israel's history," Netanyahu said about 58 billion shekels from the deal will flow into the state treasury.

In a broadcast statement, he said he was hopeful that the deal would strengthen "Israel's status as a regional energy power and contribute to stability in our region."

Energy Minister Eli Cohen, speaking alongside Netanyahu, described the approval of the agreement as "a historic moment" for Israel, both diplomatically and economically.

Cohen said the approval followed several months of intensive negotiations, and that gas companies are expected to invest more than 16 billion shekels in gas infrastructure under the deal.

Israel became a natural gas producer after the discovery of major offshore fields in the eastern Mediterranean over the past decade, including the Tamar and Leviathan fields, which have transformed the country from an energy importer into a regional exporter. ■