Page 10 - DMEA Week 07 2021

DMEA POLICY DMEA

Deal nears for gas supply to Gaza

ISRAEL A breakthrough was reached last week in finding represented a major discovery for the Eastern
an agreement through which Israel will provide Mediterranean, but has since been dwarfed by
CWith Gaza Marine natural gas to the Gaza Strip, with Qatar playing the likes of Israel’s giant Leviathan and Tamar
several years away – at the role of an informal mediator. fields and Egypt’s Zohr.
the very least – from Despite Qatar having no formal relations The find was never developed, as relations
providing the PA with with Israel, Qatari envoy Mohammad al-Emadi between the PA and Tel Aviv worsened and as
supplies, gas from Israel said at the weekend that a deal would likely be tentative plans for the field to supply gas to Israel
is expected to provide approved within the next six months, with Isra- were abandoned.
major savings and el’s Delek Group seen as the supplier. In September, members of the East Medi-
improve energy security. Al-Emadi said: “There are two contracts terranean Gas Forum (EMGF) said they were
here: one is the purchasing of the gas, between discussing the development of the field. Egyp-
the Palestinian Authority (PA) and the Israeli tian Petroleum and Mineral Resources Minister
Delek corporation; the other contract is to place Tarek el-Molla said: “We have the Gaza Marine
a gas line.” gas field, which now we are taking together
Delek will provide the gas from Israel’s giant with the Palestinians and Israel in order to work
offshore Leviathan field, with the company together in order to develop this discovery there.”
seeking to sell its stake in the Tamar gas field as
part of a move to list its other assets in a London Amicable alternative
Stock Exchange initial public offering (IPO). With Gaza Marine several years away – at the
The company will also take responsibility for very least – from providing the PA with supplies,
the construction of transmission systems for a gas from Israel is expected to provide major sav-
long-awaited pipeline connecting Gaza with the ings and improve energy security.
Israeli network. “The pipeline will reduce the [annual] cost
Qatar has assumed its role having provided of electricity from $22mn to less than $10mn,”
funds over the past three years to support Pal- al-Emadi said.
estinian authorities, funding Gaza’s power plant Meanwhile, Sven Kühn von Burgsdorff,
and other infrastructure projects as well as giving the European Union’s envoy to the Palestin-
aid to families. ians, was quoted by the Israel Times as say-
ing: “The importance of this project is not
Resource shortfall just that it will to a large extent allow catering
The PA has few resources of its own. In 2018, to the energy demands of the Gaza Strip; it
the Palestine Investment Fund (PIF) formally will also help power the Gaza desalination
assumed control of the Gaza Marine gas field plant, ensuring access to clean water for many
off the coast of the Gaza Strip from Royal Dutch Gazans.”
Shell, pledging to initiate a search for a new inter- The EU has agreed in principle to contribute
national operator. $5mn towards the construction of the pipeline,
The site is located around 36 km off the while al-Emadi said that Qatar would pay for
coast of the Gaza Strip and had been held by the construction of the pipeline within Israeli
BG Group prior to its merger with Shell in territory.
2017. BG acquired the asset in 1999 under a Kühn von Burgsdorff added that he hoped
25-year licence and the following year discov- the agreements would be finalised “within the
ered the Gaza Marine field, with reserves esti- next few months”, adding that all parties involved
mated at around 1 tcf (28 bcm). At the time, this “want to move forward on this”. ™

P10 www. NEWSBASE .com Week 07 18•February•2021