Egypt/Israel/Palestinian Negotiations to Exploit Gas Off Gaza

Negotiations on the exploitation of hydrocarbons in the eastern Mediterranean are taking place between Egypt, the Palestinians and the Hebrew state.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Underlying the agreement announced by Lebanon and Israel on their maritime border, negotiations on the exploitation of hydrocarbons in the eastern Mediterranean are taking place between Egypt, the Palestinians and the Hebrew state and concern important gas deposits off Gaza.

“Our gas, our right!”. Posters have recently appeared in the Gaza Strip urging neighbors in the region to revive a project that has been dormant for two decades: the exploitation of the Marine field.

In 1999, the Palestinian Authority commissioned British Gas to conduct exploration drilling, before the giant Shell took over in 2016, only to withdraw two years later amid Israeli objections and other disagreements.

Since then, the Palestinian Authority has been looking for a group to invest in the development of the field, which is located some 30 km off the coast of Gaza and whose reserves are estimated at around 28 billion m3 of natural gas, a godsend for the ailing Palestinian economy.

Talks are held sporadically between Israel and the Palestinian Authority (PA). The only problem is that Gaza is not controlled by the PA but by Hamas, which is also seeking to profit from the field, which is located in an area that has been under Israeli blockade for 15 years.

“Serious discussions are underway to reach a framework agreement, which we expect to reach before the end of this year,” a senior PA official who requested anonymity told AFP this week.

They involve the Palestinian Consolidated Contractors Company (CCC), the Palestinian Investment Fund (PIF), the Egyptian Natural Gas Holding Company (Egas) and Israel.

“As soon as the agreement is signed, the Egyptian company Egas will begin work to develop the Marine 1 and 2 fields, with the aim of starting production in two years,” he added.

– With Hamas? –

An Egyptian source told AFP that Cairo was “in contact with all parties, including Israel, to develop and take advantage of the gas field in Gaza, which would also support the Palestinian economy.

Questioned by AFP, the Israeli Ministry of Energy did not wish to comment.

“Israeli approval is needed to start work and expand the pipeline network,” said another PA official familiar with the talks.

He said he hoped that Egypt would succeed in convincing Israel and that the United States would exert pressure as it did for the agreement negotiated by Washington with Lebanon and Israel to allow the extraction of hydrocarbons by both countries.

A dialogue already exists between Israel, Egypt and the Palestinians since the creation in 2019 of the Eastern Mediterranean Gas Forum, responsible for ensuring compliance with international law in the management of gas resources, and which also includes Jordan, Cyprus, Greece and Italy.

On the other hand, Egypt and Israel share an undersea gas pipeline, passing off the coast of Gaza and allowing Israeli gas to be transported to Egypt, where it will now be liquefied and transported by ship to Europe, which is seeking to diversify its supplies.

– “Obstruction” –

In the current geopolitical and energy context, Hamas is becoming impatient and organizing demonstrations to insist on Palestinian rights to the gas resources off the coast of the Gaza enclave under Israeli blockade.

“We warn the occupation (Israel) against any change in our right to our maritime resources, especially natural gas off our coast,” said Suhail al-Hindi, the Hamas official in charge of the natural resources file.

“From a legal point of view, Hamas has nothing to do with Gaza gas, but because it controls the enclave it can easily obstruct. However, I believe that Egypt can solve this problem by putting pressure on Hamas,” Mazen Al-Ajla, professor of economics at the Islamic University of Gaza, told AFP. “Israel insists, moreover, that Hamas should not benefit from Gaza’s gas as a condition for any agreement.

Hamas and the Fatah movement, which dominates the Palestinian Authority, signed a reconciliation agreement on Thursday after more than 15 years of coldness, but it is not known how far it will go, especially on gas exploitation off Gaza.

Global South Utilities is investing $1 billion in new solar, wind and storage projects to strengthen Yemen's energy capacity and expand its regional influence.
British International Investment and FirstRand partner to finance the decarbonisation of African companies through a facility focused on supporting high-emission sectors.
Budapest moves to secure Serbian oil supply, threatened by Croatia’s suspension of crude flows following US sanctions on the Russian-controlled NIS refinery.
Moscow says it wants to increase oil and liquefied natural gas exports to Beijing, while consolidating bilateral cooperation amid US sanctions targeting Russian producers.
The European Investment Bank is mobilising €2bn in financing backed by the European Commission for energy projects in Africa, with a strategic objective rooted in the European Union’s energy diplomacy.
Russia faces a structural decline in energy revenues as strengthened sanctions against Rosneft and Lukoil disrupt trade flows and deepen the federal budget deficit.
Washington imposes new sanctions targeting vessels, shipowners and intermediaries in Asia, increasing the regulatory risk of Iranian oil trade and redefining maritime compliance in the region.
OFAC’s licence for Paks II circumvents sanctions on Rosatom in exchange for US technological involvement, reshaping the balance of interests between Moscow, Budapest and Washington.
Finland, Estonia, Hungary and Czechia are multiplying bilateral initiatives in Africa to capture strategic energy and mining projects under the European Global Gateway programme.
The Brazilian president calls for a voluntary and non-binding energy transition during COP30 in Belém, avoiding direct confrontation with oil-producing countries.
The region attracted only a small share of global capital allocated to renewables in 2024, despite high energy needs and ambitious development goals, according to a report published in November.
The United States approves South Korea’s development of civilian uranium enrichment capabilities and supports a nuclear-powered submarine project, expanding a strategic partnership already linked to a major trade agreement.
The EU member states agree to prioritise a loan mechanism backed by immobilised Russian assets to finance aid to Ukraine, reducing national budgetary impact while ensuring enhanced funding capacity.
The Canadian government commits $56 billion to a new wave of infrastructure projects aimed at expanding energy corridors, accelerating critical mineral extraction and reinforcing strategic capacity.
Berlin strengthens its cooperation with Abuja through funding aimed at supporting Nigeria’s energy diversification and consolidating its renewable infrastructure.
COP30 begins in Belém under uncertainty, as countries fail to agree on key discussion topics, highlighting deep divisions over climate finance and the global energy transition.
The United States secures a tungsten joint venture in Kazakhstan and mining protocols in Uzbekistan, with financing envisaged from the Export-Import Bank of the United States and shipment routed via the Trans-Caspian corridor.
The United States grants Hungary a one-year waiver on sanctions targeting Russian oil, in return for a commitment to purchase US liquefied natural gas worth $600mn.
Meeting in Canada, G7 energy ministers unveiled a series of projects aimed at securing supply chains for critical minerals, in response to China’s restrictions on rare earth exports.
Donald Trump announces an immediate reduction in tariffs on Chinese fentanyl-related imports from 20% to 10%, potentially impacting energy flows between Washington and Beijing.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.