Israeli Gas to Be Pumped to Syria and Lebanon through Arab Pipeline to Curb Iran’s Influence

In this Monday, March 29, 2021 file photo, the capital city of Beirut remains in darkness during a power outage as the sun sets, in Lebanon. (AP)
In this Monday, March 29, 2021 file photo, the capital city of Beirut remains in darkness during a power outage as the sun sets, in Lebanon. (AP)
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Israeli Gas to Be Pumped to Syria and Lebanon through Arab Pipeline to Curb Iran’s Influence

In this Monday, March 29, 2021 file photo, the capital city of Beirut remains in darkness during a power outage as the sun sets, in Lebanon. (AP)
In this Monday, March 29, 2021 file photo, the capital city of Beirut remains in darkness during a power outage as the sun sets, in Lebanon. (AP)

The gas that will be pumped to Lebanon through the Arab pipeline, which stretches from Egypt, Jordan and Syria, is mostly Israeli. The electricity that will be sent to Lebanon through Syria and Jordan is also mostly Israeli, in line with an agreement that was drafted years ago by senior US diplomat Amos Hochstein.

Just days ago, Hochstein himself sponsored border negotiations between Lebanon and Israel. He informed Beirut that the Arab Gas Pipeline will be exempted from the Caesar Act sanctions imposed by Washington on Syria. The US official was also behind a Jordanian-Israeli deal in 2014 that sought to promote an “axis of moderation in the Middle East between moderate Arab countries and Israel.”

Beyond the technical and economic aspects of the new gas deal, several signs indicate that it is ultimately aimed at confronting Iran’s influence in Lebanon and Syria. The greatest evidence of this is that the deal was announced just days within Tehran’s announcement that it was sending oil derivatives to Lebanon through Syria. Beyond the region, Moscow and Washington are also seeing eye-to-eye on this issue despite their varying motives and goals.

A western official quoted a senior Russian official as saying that Israel was the one who encouraged Russia and the US to force the return of the Damascus regime to southern Syria and agree to delivering energy to Lebanon. Israel believes that such a move will help confront Iran’s influence in Lebanon and Syria, said the Russian official. Furthermore, CIA chief William Burns, who had toured the region in recent months, was also involved in the gas deal, which was also backed by National Security Council Coordinator for the Middle East and North Africa Brett McGurk.

Drafting the deal demanded extensive efforts and coordination: Establishing security in southern Syria where the gas and energy networks will pass through. Indeed, Russia led “settlements” in recent months that have seen the return of government forces along the border with Jordan. The opposition was forced out of the area, mines are being removed and Amman has since improved its relations with Damascus, with Jordan’s King Abdullah and Syrian President Bashar Assad holding a telephone conversation early in October. Moreover, the Amman-Damascus highway was reopened and discussions have been held over border security and providing incentives to Damascus.

Ministerial meetings between Lebanon, Egypt, Jordan and Syria have also been held to overcome obstacles in the operation of the gas pipeline and energy network. Also part of the deal is Washington’s pledge to Moscow that the World Bank will fund the project through assistance to Lebanon’s Electricite du Liban (EDL).

Notably, US Ambassador to Lebanon Dorothy Shea informed Lebanese President Michel Aoun that Washington had agreed to the proposal after holding telephone talks with the Egyptian and Israeli energy ministers. Those talks focused on “future plan to deliver Israeli gas for liquification in Egyptian plants before their export.” Israeli sources said the plan called for “delivering the Israeli gas through natural gas plants in Egypt ahead of their export to a third country.”

Egyptian and Israeli companies have struck several agreements over the years. In 2018, they agreed to the delivery of 64 billion cubic meters of Israeli gas from the Tamar and Leviathan Mediterranean fields to Egypt. The deal is valid for ten years and was worth 15 billion dollars. After Egypt declared self-sufficiency in gas production, it announced that the import of Israeli gas transforms it into a regional energy hub.

On the Jordanian front, Hochstein had kicked off negotiations over an electricity deal between Amman and Tel Aviv in 2012. Years later, Jordan’s National Electric Power Company reached an agreement with the American company representing the Leviathan field over the delivery of 45 cubic meters of gas for electricity production.

Washington’s interest in this project was piqued in order to provide political cover for the gas and electricity projects for Lebanon. American officials informed their Arab counterparts that the projects will be exempt from the Caesar Act that came into effect in mid-2020. Beirut, Cairo and Amman still demanded written guarantees and Hochstein informed the Lebanese officials of the exemptions.

In spite of the technical and political challenges, such as fixing the actual pipeline, removing mines and protecting the border, Washington has sought to remove legal obstacles and Moscow has sought to remove the military ones all for mainly political purposes, as opposed to economic ones.



What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
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What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case. Supplies of Russian gas to Europe via Ukraine may completely stop from Jan. 1 2025 after the current five-year deal expires as Kyiv has refused to negotiate the new terms of the transit with Moscow during the war.
Here is what happens if Russian gas transit via Ukraine is completely turned off and who will be affected most, according to Reuters.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow lost its share to rivals such as Norway, the United States and Qatar since the invasion of Ukraine in 2022, prompting the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
Czech Republic almost completely cut gas imports from the east last year, but has started taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Türkiye under the Black Sea. Türkiye sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they would not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for imposing high transit fees for alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees from Russian gas transit. Russia earns over $3 billion on sales via Ukraine based on an average gas price of $200 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss EU's gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it won't do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal, an Azeri presidential advisor told Reuters, who declined to give further details.