Reserves of natural gas were found offshore the Gaza Strip in the year 2000, within the framework of licensing to British Gas by the Palestinian National Authority. [1] The discovered gas field, Gaza Marine, though mediocre in size, had been considered at the time as one of the possible drives to boost Palestinian economy and promote regional cooperation.
With Hamas takeover of the Gaza Strip in the year 2007, the chances for developing the gas field turned low - both due to standoff with the Ramallah administration and the Israeli refusal to deal with Hamas [2] group. The chances further diminished with the discovery of major gas fields in the Israeli economic waters in 2009 and 2010, making Israel an unlikely customer for the Palestinian gas. In 2023 Israel has given preliminary approval for the development of the Gaza Marine gas field, with the involvement of the Palestinian Authority and Egypt, [3] [4] but, as of 2024, Gaza's natural gas was still underwater.
The legal status of the Gaza Marine gas field is complex and contested. In 1999, the license for the area was controversially granted to the Palestinian Authority by Israeli Prime Minister Ehud Barak, but its precise legal standing remains ambiguous. As a result, when the Houston-based Noble Energy and its Israeli partner Delek took BG Group to court in 2021 to challenge the license area it had been given by the PA, the court abstained from giving a verdict, because, according to the government of Israel, pending a final peace deal, it was the equivalent of “no-man’s water. [5] Moreover, in 2001, Barak, as a goodwill gesture, adjusted the maritime boundary in the region, ensuring that the entirety of Gaza Marine would be situated within Palestinian territorial waters, rather than extending into Israel's Exclusive Economic Zone. [6]
The Gaza Marine field's location complicates its management, as neither the Palestinian Authority nor Hamas, which controls Gaza, has full jurisdiction over it. According to the Oslo Accord, maritime zones near Gaza are under partial Palestinian control, yet any activity beyond 20 nautical miles requires Israeli naval approval. The situation is further complicated by increased Israeli control over the area since Hamas took over Gaza in 2007. [5]
The Palestinians signed a memorandum of intent on November 8, 1999 with British Gas and a company linked to the Palestinian Authority, the Consolidated Contractors Company, giving them rights to explore the area. [7] [8] The agreement granted the BG Group 90 percent of the license shares and 10 percent to the PA, until gas production begins, at which point the PA's share increases to 40 percent, of which 30 percent would be held by Consolidated Contractors Company. [9] The natural gas deposits, found in two small gas fields dubbed Gaza Marine 1 and Gaza Marine 2, have been discovered in September 2000, 36 kilometres (22 mi) offshore, at a depth of 2,000 feet (610 m). [5] The two Gaza Marine fields were estimated to contain more than 1 trillion cubic feet (about 30 billion cubic meters) of natural gas, [10] [11] more than is needed to power the Palestinian territories, with potential to export. [12] Consequently, in order to reduce the investment risk, BG sought long-term advance gas purchase commitments from other clients, looking first to cooperation with Israel. [9] Security and economic negotiations have been ongoing with Israel Electric Corporation (IEC) and Egypt exploring options for converting the natural gas into liquefied natural gas. [5] The gas field has been portrayed as potentially beneficial to both Israelis and Palestinians. [9]
The IEC initially refused to purchase gas from the Gaza Marine field, citing that it was more expensive than gas available from Egypt. However, reports later indicated that the refusal was politically motivated. In 2001, then-Prime Minister Ariel Sharon blocked any deal involving Palestinian gas. By May 2002, Sharon lifted the veto after encouragement from British Prime Minister Tony Blair, who believed that purchasing Palestinian gas could contribute to advancing peace efforts during a tense period. Despite some progress in negotiations, in the summer of 2003, Sharon reversed his stance, halting any deal that might allow funds to reach the Palestinian Authority (PA), citing concerns that such funds could support terrorism. [9]
Negotiations over the Gaza Marine gas field saw a positive shift after the death of Yasser Arafat in 2004 and the election of Mahmud Abbas, leading to a series of reforms in PA. Cooperation further improved with the election of Ehud Olmert as Israeli Prime Minister in 2006, bolstered by Tony Blair’s good relations with Olmert. On April 29, 2007, the Israeli cabinet agreed to reopen talks with the British Gas Group (BG), and by May, Israel had proposed purchasing 0.05 TCF (1.4 BCM) of Palestinian gas annually billion starting in 2009. A secret agreement between Abbas and the Israeli government ensured that the PA's gas revenues would be managed through an international account to prevent access by the Hamas-dominated PA government. The deal included plans to pipe gas to Ashkelon for liquefaction and distribution, which would support both Israeli and Gaza energy needs, fostering economic interdependence seen as beneficial for peace efforts. [9]
On 14 June 2007, Hamas seized power in the Gaza Strip. The new government in Gaza declared that it would demand to change the terms of the contract, particularly with regard to the Palestinian share. "If the contract is changed, the economic consequences on the Palestinian society would be tangible. . . . The Palestinians would be depending on their resources rather than the international aid," argued one official. [13] Nonetheless, negotiations between Israel and the PA in Ramallah continued for a time, bypassing Hamas. [9]
In October 2007, former Israeli chief of staff Moshe Ya'alon strongly advised the Israeli government to cancel the BG deal: "Clearly, Israel needs additional gas sources, while the Palestinian people sorely need new sources of revenue. However, with Gaza currently a radical Islamic stronghold, and the West Bank in danger of becoming the next one, Israel's funneling a billion dollars into local or international bank accounts on behalf of the Palestinian Authority would be tantamount to Israel's bankrolling terror against itself." [14]
Ultimately, given the political uncertainty, BG and the Israeli government stated that they would delay any signing until the end of the year. [9] By 20 December 2007, BG officially announced the end of the negotiations with Israel due to insurmountable disagreements on too many key issues. On 14 January 2008, BG announced the closure of its office in Israel, while keeping its office in Ramallah and retaining its concession for the gas fields. [15]
In 2014, PA and Russian officials discussed a possible cooperation between Gazprom and the Palestinian Investment Fund in the field of gas and oil exploration and extraction. In September 2015, Abu Mazen visited Moscow, where he further discussed with Vladimir Putin the possibility that Gazprom develops Gaza Marine field, but no specific formula was reached. [16]
In 2015, the Palestinian government resumed negotiations on the agreement with BG and abrogated the exclusive rights it had given to the company. It also raised the PIF share from 10% under the old agreement to 17.5%. Subsequently, Shell acquired BG on April 8, 2016. [17]
As of 2017, the Gaza Marine field licenses were owned by PIF with 17.5% of the field development rights, Consolidated Contractors Company owns 27.5% of these rights and Shell 55%. [17] The development and gas extraction rights belonged to the Palestinians alone. [17] In the year 2018, Shell company, which had taken over British Gas earlier, decided to relinquish its 60% stake in Gaza Marine, [1] transferring it to Palestinian state companies.
As of 2023, Israel, Egypt, and the Palestinian Authority reached an agreement to jointly develop this gas field. According to the agreement, PIF and the Consolidated Contractors Company each hold a 27.5 percent stake in the project, while the remaining 45 percent goes to Egypt's natural gas consortium, EGAS. The gas extraction will occur within Palestinian waters, and the gas will be transported via a 40-mile undersea pipeline to Egypt for processing. Once integrated into Egypt's energy grid, the natural gas will be sold, as an export, to Palestinians and others. [18] In June 2023, Israel granted preliminary approval to the project, while clarifying that its implementation is "subject to coordination" between its security services, Egypt and the PA, in order to "maintain its security and diplomatic interests." [10]
The Palestinian Authority, officially known as the Palestinian National Authority or the State of Palestine, is the Fatah-controlled government body that exercises partial civil control over the Palestinian enclaves in the Israeli-occupied West Bank as a consequence of the 1993–1995 Oslo Accords. The Palestinian Authority controlled the Gaza Strip prior to the Palestinian elections of 2006 and the subsequent Gaza conflict between the Fatah and Hamas parties, when it lost control to Hamas; the PA continues to claim the Gaza Strip, although Hamas exercises de facto control. Since January 2013, following United Nations General Assembly resolution 67/19, the Palestinian Authority has used the name "State of Palestine" on official documents, without prejudice to the Palestinian Liberation Organization (PLO) role as "representative of the Palestinian people".
The Israeli–Palestinian conflict is an ongoing military and political conflict about land and self-determination within the territory of the former Mandatory Palestine. Key aspects of the conflict include the Israeli occupation of the West Bank and Gaza Strip, the status of Jerusalem, Israeli settlements, borders, security, water rights, the permit regime, Palestinian freedom of movement, and the Palestinian right of return.
The history of the State of Palestine describes the creation and evolution of the State of Palestine in the West Bank and Gaza Strip. During the British mandate period, numerous plans of partition of Palestine were proposed but without the agreement of all parties. In 1947, the United Nations Partition Plan for Palestine was voted for. The leaders of the Jewish Agency for Palestine accepted parts of the plan, while Arab leaders refused it. This triggered the 1947–1949 Palestine war and led, in 1948, to the establishment of the state of Israel on a part of Mandate Palestine as the Mandate came to an end.
Mahmoud Abbas, also known by the kunya Abu Mazen, is a Palestinian politician who is the president of the State of Palestine and the Palestinian National Authority (PNA). He has been the chairman of the Palestine Liberation Organization (PLO) since 2004, PNA president since January 2005, and State of Palestine president since May 2005. Abbas is also a member of the Fatah party and was elected chairman in 2009.
Palestine, officially the State of Palestine, is a country in the southern Levant region of West Asia recognized by 146 out of 193 UN member states. It encompasses the Israeli-occupied West Bank, including East Jerusalem, and the Gaza Strip, collectively known as the occupied Palestinian territories, within the broader geographic and historical Palestine region. Palestine shares most of its borders with Israel, and it borders Jordan to the east and Egypt to the southwest. It has a total land area of 6,020 square kilometres (2,320 sq mi) while its population exceeds five million people. Its proclaimed capital is Jerusalem, while Ramallah serves as its administrative center. Gaza City was its largest city prior to evacuations in 2023.
The economy of the State of Palestine refers to the economic activity of the State of Palestine. Palestine receives substantial financial aid from various international donors, including governments and international organizations. In 2020, the inflation rate of -0.7% and unemployment rate was 25.9%. While exports were recorded at US$1 billion, with an import value of US$6 billion. Contributors to the national economy is service sector (47%), wholesale and repair (19%), manufacturing (12%), agriculture (7%), finance and banking (3%), construction (5%), information technology (5%) and transportation sector (2%).
Intermittent discussions are held by various parties and proposals put forward in an attempt to resolve the Israeli–Palestinian conflict through a peace process. Since the 1970s, there has been a parallel effort made to find terms upon which peace can be agreed to in both this conflict and the wider Arab–Israeli conflict. Notably, the Camp David Accords between Egypt and Israel included discussions on plans for "Palestinian autonomy", but did not include any Palestinian representatives. The autonomy plan would later not be implemented, but its stipulations would to a large extent be represented in the Oslo Accords.
The government of Palestine is the government of the Palestinian Authority or State of Palestine. The Executive Committee of the Palestine Liberation Organization (EC) is the highest executive body of the Palestine Liberation Organization and acts as the government. Since June 2007, there have been two separate administrations in Palestine, one in the West Bank and the other in the Gaza Strip. The government on the West Bank was generally recognised as the Palestinian Authority Government. On the other hand, the government in the Gaza Strip claimed to be the legitimate government of the Palestinian Authority. Until June 2014, when the Palestinian Unity Government was formed, the government in the West Bank was the Fatah-dominated Palestinian government of 2013. In the Gaza Strip, the government was the Hamas government of 2012. Following two Fatah–Hamas Agreements in 2014, on 25 September 2014 Hamas agreed to let the PA Government resume control over the Gaza Strip and its border crossings with Egypt and Israel, but that agreement had broken down by June 2015, after President Abbas said the PA government was unable to operate in the Gaza Strip.
Israel Electric Corporation is the largest supplier of electrical power in Israel and the Palestinian territories. The IEC builds, maintains, and operates power generation stations, sub-stations, as well as transmission and distribution networks in Israel.
The Prisoners' Document, officially the National Conciliation Document of the Prisoners was written in May 2006 by Palestinian prisoners, who were being held in an Israeli jail. The five prisoners who took part in writing the Document were respectively affiliated with Fatah, Hamas, Islamic Jihad, the Popular Front for the Liberation of Palestine (PFLP), and the Democratic Front for the Liberation of Palestine (DFLP).
The Palestinian National Security Forces are the paramilitary security forces of the Palestinian National Authority. The name may either refer to all National Security Forces, including some special services but not including the Interior Security Forces, the Presidential Guard and General Intelligence, or refer to the main force within the National Security Forces. Since the signing of the Oslo Accords, these forces operate in areas controlled by the PNA. In 2003, the organizations were merged into the Palestinian Security Services.
The Fatah–Hamas conflict is an ongoing political and strategic conflict between Fatah and Hamas, the two main Palestinian political parties in the Palestinian territories, leading to the Hamas takeover of the Gaza Strip in June 2007. The reconciliation process and unification of Hamas and Fatah administrations remains unfinalized and the situation is deemed a frozen conflict.
The Rafah Border Crossing or Rafah Crossing Point is the sole crossing point between Egypt and Palestine's Gaza Strip. It is located on the Egypt–Palestine border. Under a 2007 agreement between Egypt and Israel, Egypt controls the crossing but imports through the Rafah crossing require Israeli approval.
The Tamar gas field is a natural gas field in the Mediterranean Sea off the coast of Israel. The field is located in Israel's exclusive economic zone, roughly 80 kilometres (50 mi) west of Haifa in waters 1,700 metres (5,600 ft) deep. The Tamar field is considered to have proven reserves of 200 billion cubic metres of natural gas, while the adjoining Tamar South field has 23 billion cubic metres. Together, they may have an additional 84 BCM of "probable" reserves and up to 49 BCM of "possible" reserves. At the time of discovery, Tamar was the largest find of gas or oil in the Levant basin of the Eastern Mediterranean Sea and the largest discovery by Noble Energy. Since Tamar's discovery, large gas discoveries have been made in other analogous geological formations dating back to the Oligocene–Miocene epoch in the Levant basin. Because Tamar was the first such discovery, these gas containing presalt formations have become collectively known as Tamar sands.
The Oslo Accords are a pair of interim agreements between Israel and the Palestine Liberation Organization (PLO): the Oslo I Accord, signed in Washington, D.C., in 1993; and the Oslo II Accord, signed in Taba, Egypt, in 1995. They marked the start of the Oslo process, a peace process aimed at achieving a peace treaty based on Resolution 242 and Resolution 338 of the United Nations Security Council. The Oslo process began after secret negotiations in Oslo, Norway, resulting in both the recognition of Israel by the PLO and the recognition by Israel of the PLO as the representative of the Palestinian people and as a partner in bilateral negotiations.
Hamas has governed the Gaza Strip in Palestine since its takeover of the region from rival party Fatah in June 2007. Hamas' government was led by Ismail Haniyeh from 2007 until February 2017, when Haniyeh was replaced as leader of Hamas in the Gaza Strip by Yahya Sinwar. Until October 2024, Yahya Sinwar was the leader of Hamas in the Gaza Strip. In January 2024, due to the ongoing Israel–Hamas war, Israel said that Hamas lost control of most of the northern part of the Gaza Strip. In May 2024, Hamas regrouped in the north.
The 2013–2014 Israeli–Palestinian peace talks were part of the Israeli–Palestinian peace process. Direct negotiations between Israel and the Palestinians began on 29 July 2013 following an attempt by United States Secretary of State John Kerry to restart the peace process.
The Agreement on Movement and Access (AMA) was an agreement between Israel and the Palestinian Authority (PA) signed on 15 November 2005 aimed at improving Palestinian freedom of movement and economic activity within the Palestinian territories, and open the Rafah Crossing on the Gaza–Egypt border. AMA was described as: ″an agreement on facilitating the movement of people and goods within the Palestinian Territories and on opening an international crossing on the Gaza-Egypt border that will put the Palestinians in control of the entry and exit of people.″ Part of the agreement was the Agreed Principles for Rafah Crossing.
A series of attempts to resolve the hostility between Fatah and Hamas have been made since their 2006–2007 conflict and the subsequent violent conflict over the Gaza Strip.
Palestine produces no oil or natural gas and is predominantly dependent on the Israel Electric Corporation (IEC) for electricity. According to UNCTAD, the Palestinian Territory "lies above sizeable reservoirs of oil and natural gas wealth" but "occupation continues to prevent Palestinians from developing their energy fields so as to exploit and benefit from such assets." In 2012, electricity available in West Bank and Gaza was 5,370 GW-hour, while the annual per capita consumption of electricity was 950 kWh. National sources only produce 445 GWh of electricity, supplying less than 10% of demand. The only domestic source of energy is the disputed Gaza Marine gas field, which has not yet been developed. Palestinian energy demand increased rapidly, increasing by 6.4% annually between 1999 and 2005. Future consumption of electricity is expected to reach 8,400 GWh by 2020 on the expectation that consumption will increase by 6% annually.
