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Palestinian Ministerial Team to Follow up Gas Extraction from Gaza

Workers are seen at Gaza's lone power plant, in the central Gaza Strip February 23, 2021. (Reuters)
Workers are seen at Gaza's lone power plant, in the central Gaza Strip February 23, 2021. (Reuters)
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Palestinian Ministerial Team to Follow up Gas Extraction from Gaza

Workers are seen at Gaza's lone power plant, in the central Gaza Strip February 23, 2021. (Reuters)
Workers are seen at Gaza's lone power plant, in the central Gaza Strip February 23, 2021. (Reuters)

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.”

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Arab World

Grundberg Hopes ‘Gaza Truce’ Will Revive the Peace Process in Yemen

Hans Grundberg, Special Envoy of the Secretary-General for Yemen, briefs on Wednesday the Security Council on the situation in Yemen (UN)
Hans Grundberg, Special Envoy of the Secretary-General for Yemen, briefs on Wednesday the Security Council on the situation in Yemen (UN)
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Grundberg Hopes ‘Gaza Truce’ Will Revive the Peace Process in Yemen

Hans Grundberg, Special Envoy of the Secretary-General for Yemen, briefs on Wednesday the Security Council on the situation in Yemen (UN)
Hans Grundberg, Special Envoy of the Secretary-General for Yemen, briefs on Wednesday the Security Council on the situation in Yemen (UN)

Hans Grundberg, the UN Special Envoy for Yemen, warned on Wednesday from the alarming escalation in Yemen that would have devastating humanitarian consequences for the Yemeni people.

In a briefing to the Security Council on the situation in the Middle East, Grundberg said a ceasefire in Gaza signals hope that a return to the peace process could materialize between the Yemeni government and Houthis.

The envoy’s briefing came after his talks with Yemeni, regional and international stakeholders across the region, during visits to Muscat, Sanaa, Tehran, and Riyadh to intensify engagements for a peaceful resolution to the conflict.

Grundberg has lately kicked off efforts to secure the release of all arbitrarily detained personnel from the United Nations, national and international organizations, diplomatic missions, and the private sector.

In his briefing, the envoy expressed concern over reports of a new wave of arbitrary detentions, which further exacerbates the suffering of families and undermines trust.

Grundberg mentioned the Houthi attacks on the ships in the Red Sea and said they hindered the prospects of peace.

He added that a ceasefire in Gaza signals hope that an opportunity to de-escalate could materialize.

The envoy said the escalating cycle of strikes and counterstrikes has hindered the prospects of peace and destabilized Yemen's economy, adding that the relative stability and improved security conditions for civilians that have existed since the 2022 truce could be lost.

In contrast to Grundberg's hopes for a revival of the peace process, many Yemenis fear the Houthis would ignite a new war against the Yemeni government, exploiting the popular sympathy with Palestine that has enabled the group to recruit tens of thousands over the past year.

In this regard, Grundberg said, “I am concerned that parties may reassess their options for peace and make miscalculations based on flawed assumptions.”

Escalation and Detainees

In his briefing, the envoy mentioned the damage caused by the Houthi attacks and the Israeli and Western strikes in Yemen.

“Recent Israeli airstrikes have damaged critical civilian infrastructure, including the port of Hodeidah and Sanaa International Airport,” he said, adding that the damage to the port and tugboats impacts the ability to unload humanitarian aid.

Grundberg said during his meetings in Sanaa, he again urged Houthis to immediately and unconditionally release all arbitrarily detained personnel from the United Nations, national and international organizations, diplomatic missions, and the private sector.

He further called on the Houthis to release the Galaxy Leader vessel and its 25-member crew, which have been unlawfully detained for over a year now.
He urged all parties to urgently take concrete steps towards achieving a nationwide ceasefire agreement in Yemen.

Elsewhere, Grundberg spoke about his office’s engagement in extensive dialogues with Yemeni parties at the technical level on economic and military issues.

“In our discussions, we explored how collaboration between the parties could unlock critical peace dividends. These include the unification of the central bank, the resumption of fossil fuel exports, and the full payment of public sector salaries,” he said.

Yemeni, US Statements

During Grundberg’s briefing, the representative of the United States, Dorothy Shea, said, “The time has come to respond to the growing global threats by holding Iran to account for enabling the Houthis long-range missile attacks on international shipping and Israel.”

She said the Houthis have expanded their campaign of detaining innocent Yemenis, targeting more former embassy staff simply trying to do their jobs.

She stressed the need to deprive the Houthis of illicit revenues that sustain their attacks and recognize the growing relationship between the Houthis and other terrorist groups like al-Shabaab.

Meanwhile, Abdullah Ali Fadhel Al-Saadi, Permanent Representative of Yemen to the United Nations, addresses the Security Council meeting on the situation in his country.

“The humanitarian and economic situation in Yemen is intolerable,” he said, adding that the government is eager to engage with all efforts to reach a political settlement.

Al-Saadi also called on the Security Council to assume its responsibilities and implement its decisions that end the Houthi coup based on agreed international references.