Due primarily to Israeli objections and barriers, more than 36 billion cubic meters of natural gas have remained untapped for the past 20 years.
According to Israel’s Channel 13 News, the Israeli government is in private discussions with the Palestinian Authority about developing a gas reservoir that is about 36 kilometers from the coast of Gaza.
The talks, which are reportedly part of political and security negotiations between the two sides in the wake of recent summits in the Egyptian resort city of Sharm el-Sheikh and Jordan’s Aqaba, were approved by Israeli Defense Minister Yoav Gallant and Prime Minister Benjamin Netanyahu, according to the reports.
To develop the gas field off the coast of Gaza, the Israeli government held internal discussions last year. Recently, after US mediation, the talks were restarted.
According to Israel, the Palestinian Authority is unable to independently develop the gas field because only states are permitted to do so legally. Most of the international community has not yet acknowledged Palestine as a state.
One suggestion for a solution is for Egypt to sponsor the endeavor. Channel 13 reports that Israel has already presented the proposal to senior Egyptian officials.
Free Gas for Everybody Except the Palestinians
Last year an understanding between Israel, the Palestine Authority and Egypt to restore gas investigation at the fields off the shore of Gaza dwindled following conversations between the gatherings.
An Egyptian company would have used Israeli infrastructure to facilitate natural gas production in the offshore fields under the previous plan. The Palestine Authority, which is represented by the Palestine Investment Fund (PIF), would receive 27.5% of the profits.
The Palestinian-owned Consolidated Contractors Company (CCC), the PIF partner, would receive an additional 27.5%. The Egyptian Natural Gas Holding Company (EGAS), which would manage the project, was allocated the remaining 45 percent.
It is anticipated that the plan under discussion right now will be similar to the one discussed last year.
Last year an understanding between Israel, the Palestine Authority and Egypt to restore gas investigation at the fields off the shore of Gaza dwindled following conversations between the gatherings.
An Egyptian company would have used Israeli infrastructure to facilitate natural gas production in the offshore fields under the previous plan. The Palestine Authority, which is represented by the Palestine Investment Fund (PIF), would receive 27.5% of the profits.
The Palestinian-owned Consolidated Contractors Company (CCC), the PIF partner, would receive an additional 27.5%. The Egyptian Natural Gas Holding Company (EGAS), which would manage the project, was allocated the remaining 45 percent.
It is anticipated that the plan under discussion right now will be similar to the one discussed last year.
In 2016, BG Group pulled out of the project and gave it to Shell, which also pulled out of the agreement in 2018 due to a number of disagreements.
If the gas fields are fully operational, it is anticipated that the PA will receive $7 billion to $8 billion in revenue annually within ten years.
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