Egypt, PA, Israel agree to develop Gaza gas field

 

Egypt, the Palestinian Authority (PA) and Israel have agreed to develop the Palestinian gas field off the coast of Gaza, Israeli Public Broadcaster Kan revealed Tuesday.

The profits from the gas field will go back to the PA and Israel, with Egypt mediating between the parties in an effort to improve the financial situation of the Palestinian Authority.

 

Last year, the Egyptian Natural Gas Holding Company (EGAS) began talking with the Palestine Investment Fund (PIF) and the Consolidated Contractors Company for Oil and Gas (CCC), an alliance of companies licensed to develop the field.

 

The field, located about 30 kilometers west of the Gaza coast and estimated to contain more than one trillion cubic feet of natural gas was discovered in 2000 by British Gas Group. But the BG Group terminated the contract in 2016 due to Israeli hurdles.

 

According to media reports, the Israeli government has repeatedly refused to allow natural gas to be extracted off the coast of the Gaza Strip, for security reasons. However, Egypt finally succeeded in persuading the Israeli government to allow the Palestinian Authority to extract natural gas off the Gaza Strip.