Page 4 - MEOG Week 43 2022

MEOG COMMENTARY MEOG

Waiting on an Egyptian

solution for Gaza’s gas

El-Molla hopes Europe’s pressing need for gas will
tip the scales in favour of developing Gaza Marine

PALESTINE IT has been known for more than two decades and the Greek Consolidated Contractors Co.
that the waters off the coast of the Gaza Strip con- (CCC), which collectively hold the development
tain significant volumes of natural gas. licence – to access the field.
WHAT: UK-based BG was granted a licence to
Egyptian and Israeli explore a section of the offshore zone by the More recent events
officials are reportedly Palestinian Authority (PA) in 1999, and the Egypt’s Petroleum Minister Tarek El-Molla did
discussing a deal that following year it announced the discovery of seek to move matters forward in February 2021,
would let EGAS lead the sizeable reserves at a field now known as Gaza saying during his first official visit to Israel that
development of Gaza Marine. The site’s resources were later estimated Cairo was willing to work with the PA to facilitate
Marine. to amount to around 989bn cubic feet (28.01bn the project. During a meeting with Yuval Stein-
cubic metres). itz, then serving as Israel’s energy minister, he
WHY: Since this is far more than enough to sus- talked about the possibility of connecting Gaza
Since the project was put tain local consumption levels in Gaza, BG saw Marine to a wider network linking Israel’s Levi-
on hold, new transport the field as a potential source of exports. Real- athan field to the shore. He was also present for
and LNG capacity have ising that potential proved very complicated, the signing of a memorandum of understanding
become available. however. BG’s proposals for developing Gaza (MoU) between state-run Egyptian Natural Gas
Marine repeatedly ran aground due to Israeli Holding (EGAS) and CCC.
WHAT NEXT: reservations about the PA’s plans, as well as polit- The MoU laid the groundwork for EGAS to
The parties are waiting on ical conflicts between the PA, whose leaders are begin talks with PIF and CCC, and those talks
a response from Hamas. based in the West Bank, and Hamas, which has appear to have borne some fruit. El-Molla cer-
dominated Gaza since 2007. tainly seem to be optimistic. Earlier this week,
As a result, BG eventually quit the project and he was reported to be in talks with PA Prime
transferred its equity stake to Shell (UK), which Minister Muhammad Shtayyeh and the Israeli
in turn exited Gaza Marine in 2018. Since then, government with the goal of striking a deal on
there has been no progress, and Israeli authori- Gaza Marine – presumably with EGAS taking
ties have not permitted the Palestinian coalition the lead on the project.
– formed by Palestine Investment Fund (PIF) El-Molla said that the formation of a new

P4 www. NEWSBASE .com Week 43 26•October•2022