Palestinian Prime Minister Mohammad Shtayyeh said his government would form a team of ministers to follow up on the extraction of gas off the coast of Gaza.
He added that the head of the investment fund, Mohammad Mostafa, and his team were negotiating an agreement on gas extraction with Egypt.
Sources had told Asharq Al-Awsat that Egypt succeeded in persuading Israel to start extracting gas from the Palestinian field after its development, amid Europe’s need for energy as a result of the Russian-Ukrainian war.
The sources added ongoing negotiations focused on the extraction mechanisms and each side’s shares and revenues, pointing to “great progress” in this regard.
The Palestinians hope that the negotiations would lead to an agreement that would satisfy the three parties, namely Palestine, Egypt and Israel.
“We want an agreement that serves our national rights and capabilities, and benefits our people,” Shtayyeh told a Cabinet meeting on Monday.
British Gas company and its partner, Consolidated Contractors Company (CCC) discovered the field in 2000, 36 kilometers west of Gaza City.
Later that year, the company succeeded in drilling two wells in the area, the Marine 1 and 2 gas fields, and estimated the existing amount of gas at about 1.4 trillion cubic feet, which would cover the needs of the Gaza Strip and the West Bank for 15 years, according to current consumption rates.
Egypt informed the Palestinian Authority of Israel’s approval to start extracting gas off the coast of Gaza, provided that Egypt and Israel supervise the extraction process.
According to an initial agreement, part of the gas will be exported to Egypt, while the greater share will be shipped by Israel to Europe via Greece and Cyprus, in exchange for financial revenues that will go to the treasury of the Palestinian Authority.
A report by AFP said that talks were underway between the Palestine Investment Fund and the Consolidated Contractors Group (CCC), and the Egyptian Natural Gas Holding Company (EGAS) to develop the Gaza gas field.
The Investment Fund and the Consolidated Contractors Group each own a 27.5% stake in the Gaza gas field. The rest is owned by the operating company.
A senior PA official told AFP that “serious talks” were underway to reach a framework agreement by the end of the year.
“Once an agreement is signed, the Egyptian company EGAS will commence work to develop the Marine 1 and 2 gas fields, with the aim of starting production within two years,” the official said, speaking on condition of anonymity.
An Egyptian source told AFP that Cairo has been “in contact with all parties, including Israel, to develop and profit from Gaza’s gas reserves, which would also support the Palestinian economy.”
