Page 9 - MEOG Week 07 2021

MEOG PIPELINES & TRANSPORT MEOG

Deal nears for gas supply to Gaza

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

Gaza Marine

Week 07 17•February•2021 www. NEWSBASE .com P9