Lebanon Years Away From Gas Riches Despite Israel Deal, Analysts Say

Israeli tourists seen near the northern border wall with Lebanon, close to the Israeli settlement of Shtula JALAA MAREY AFP
Israeli tourists seen near the northern border wall with Lebanon, close to the Israeli settlement of Shtula JALAA MAREY AFP
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Lebanon Years Away From Gas Riches Despite Israel Deal, Analysts Say

Israeli tourists seen near the northern border wall with Lebanon, close to the Israeli settlement of Shtula JALAA MAREY AFP
Israeli tourists seen near the northern border wall with Lebanon, close to the Israeli settlement of Shtula JALAA MAREY AFP

Lebanon is nearing agreement with Israel over a maritime dispute involving offshore gas fields, but the cash-strapped country still faces an uphill struggle towards unlocking potential hydrocarbon riches, analysts said.

"A deal would mark one step forward but it does not mean that Lebanon has become a gas- or oil-producing country," said Marc Ayoub, an associate fellow at the American University of Beirut's Issam Fares Institute.

"We are talking of a timeline of five to six years... before the first gas" if commercially viable reservoirs are in fact found, the energy expert told AFP, describing the timeframe as "optimistic".

With the demand for gas rising worldwide because of an energy crisis sparked by Russia's invasion of Ukraine, Lebanon hopes that an offshore discovery would ease its current unprecedented financial downturn.

But more than a decade since it declared its maritime boundaries and an Exclusive Economic Zone, it still has no proven natural gas reserves.

One well drilled in 2020 by a consortium of energy giants TotalEnergies, Eni and Novatek showed only traces but no commercially viable gas deposits.

Further test drilling, in a block near the border, has been hampered by the maritime border dispute between Lebanon and Israel, which are technically still at war.

Following years of US-mediated negotiations, the rival states now appear to be nearing agreement after a draft proposal from Washington at the weekend was welcomed by both sides.

A deal would allow "offshore exploration activities to continue, but that doesn't mean that Lebanon has become rich... or that its crisis has been solved", Ayoub said.

- 'First gas'

A 2012 seismic study of a limited offshore area by the British firm Spectrum estimated recoverable gas reserves in Lebanon at 25.4 trillion cubic feet (tcf).

The authorities in Lebanon have announced higher estimates.

Block 9 near the border with Israel contains the so-called Qana field or Sidon reservoir, and will be a major zone for offshore exploration by TotalEnergies and Eni that were awarded a contract in 2018.

After being partly claimed by Israel, the Qana field is expected to fall entirely to Lebanon as part of the maritime border agreement, according to Lebanese officials.

"This time next year, we should know if there is a commercial discovery in Qana or not," Ayoub said.

"If we have a discovery, it will take... no less than three to five years after exploration" before production could start.

This time frame, according to Ayoub, assumes there are no delays by Lebanese authorities who are widely blamed for the corruption and mismanagement behind the country's financial crash.

It took months for the Lebanese Petroleum Administration (LPA) regulatory body to name its board after it was formed in 2012, because of political disputes over nominations.

Several bidding rounds for offshore gas and oil licenses have been hit by delays since they began in 2013.

Already, Lebanon lags far behind Israel which has been investing in the offshore Karish field for years and is expecting its first gas within weeks.

Roudi Baroudi, an energy consultant, said that gas or oil production could start within three years if commercially viable reservoirs are found.

But to attract energy firms and benefit from potential discoveries, Lebanon desperately needs to undergo reforms, he told AFP.

"Lebanon is not a good investment unless the government implements reforms," the energy expert said.

Reforms would provide "the basic assurances that international companies need to work with less risk".

State institutions in Lebanon have collapsed under the weight of the crisis, with strikes by civil servants adding to the paralysis.

An economic recovery plan has yet to take off more than three years since the financial downturn began, despite mounting pressures from foreign donors and the International Monetary Fund.

And political gridlock has caused a months-long delay in forming a new government amid fears of a presidential vacuum after Michel Aoun's mandate expires at the end of October.

With a bankrupt state unable to deliver more than an hour or two of mains electricity a day, energy firms may choose to work on their Lebanon projects out of Cyprus, according to Baroudi.

"With no rule of law, Lebanon is a jungle," he said.

"It's absolute chaos, whether judicially, financially or in terms of regulatory" bodies.



Israel Wary of Egypt's 'Military Infrastructure' in Sinai: Peace Treaty at Risk?

Egyptian army chief Ahmed Khalifa inspects troops near Israel's border late last year. (Military spokesman)
Egyptian army chief Ahmed Khalifa inspects troops near Israel's border late last year. (Military spokesman)
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Israel Wary of Egypt's 'Military Infrastructure' in Sinai: Peace Treaty at Risk?

Egyptian army chief Ahmed Khalifa inspects troops near Israel's border late last year. (Military spokesman)
Egyptian army chief Ahmed Khalifa inspects troops near Israel's border late last year. (Military spokesman)

Israel has voiced growing concerns over Egypt’s military presence in the Sinai Peninsula, fearing a potential escalation between the two sides amid the ongoing Gaza war.

Israeli media reports said Prime Minister Benjamin Netanyahu’s government has asked both Washington and Cairo to dismantle what it describes as a “military infrastructure” established by the Egyptian army in Sinai.

However, an informed Egyptian source and experts cited by Asharq Al-Awsat insisted that Egypt has not violated its peace treaty with Israel. They argued that Cairo’s military movements are a response to Israeli breaches of the agreement.

Israel’s Israel Hayom newspaper, citing a senior Israeli security official, reported that Egypt’s military buildup in Sinai constitutes a “major violation” of the security annex of the peace treaty.

The official said the issue is a top priority for Israeli Defense Minister Israel Katz, stressing that Israel “will not accept this situation” amid what it views as Egypt’s growing military footprint in the peninsula.

The official added that the issue goes beyond the deployment of Egyptian forces in Sinai exceeding the quotas set under the military annex of the Camp David Accords.

The real concern, he said, lies in Egypt’s continued military buildup in the peninsula, which Israel views as an irreversible step.

Moreover, he stressed that while Israel is not seeking to amend its peace treaty with Egypt or redeploy troops along the border, it believes the current situation requires urgent action to prevent a potential escalation.

Egypt-Israel relations have not seen such tensions since the outbreak of the Gaza war, particularly after Israel violated a ceasefire agreement with Hamas brokered primarily by Egypt. Israeli forces resumed airstrikes on Gaza last month and failed to fulfill their commitments to withdraw from the Philadelphi Corridor and Palestinian border crossings.

A senior Egyptian source dismissed Israel’s accusations, telling Asharq Al-Awsat that “these repeated Israeli pretexts ignore the fact that Israeli forces have violated the peace treaty, seizing control of areas where Egypt objects to their presence without the necessary coordination with Cairo.”

Egypt has the right to take all necessary measures to safeguard its national security against any threats, emphasized the source.

“Nevertheless, Cairo remains fully committed to the peace treaty and has no intention of aggression against any party,” it added.

Israeli forces seized control of the Gaza-Egypt border, including the Philadelphi Corridor and the Rafah crossing, in May 2024. Israel has accused Egypt of not doing enough to stop weapons smuggling into Gaza through border tunnels—an allegation Cairo has denied.

Under the terms of the ceasefire agreement with Hamas, which Israel later broke, Israeli forces were supposed to begin withdrawing from the Philadelphi Corridor on March 1, completing the pullout within eight days. However, Israel failed to do so and instead resumed airstrikes on Gaza.

Israel also announced the creation of an administration aimed at facilitating the “voluntary departure” of Gaza residents, a move Cairo strongly rejected and formally condemned.

Egypt has insisted that Palestinians must remain in their homeland and has put forward a reconstruction plan for Gaza and called for the implementation of the two-state solution. The plan was endorsed at an emergency Arab summit three weeks ago.

Media reports have indicated that Egypt responded to Israel’s control of the Gaza border by increasing its military presence near the frontier—an act that some Israeli officials claim violates the peace treaty and threatens Israel’s security.

Former Egyptian intelligence official Gen. Mohammed Rashad told Asharq Al-Awsat that Israel itself violated the peace treaty by seizing the Philadelphi Corridor, controlling border crossings, and blocking aid to Gaza while seeking to forcibly displace Palestinians into Egypt.

“Every Israeli action along Gaza’s border with Egypt constitutes hostile behavior against Egypt’s national security,” said Rashad, who previously headed the Israeli military affairs division in Egypt’s intelligence service.

“Egypt cannot sit idly by in the face of such threats and must prepare for all possible scenarios.”

The Philadelphi Corridor is a strategically sensitive buffer zone, serving as a narrow 14-kilometer passage between Egypt, Israel, and Gaza, stretching from the Mediterranean Sea in the north to the Kerem Shalom crossing in the south.

Military expert General Samir Farag insisted that Egypt has not violated the peace treaty or its security annex in over 40 years, arguing that Israel has repeatedly breached the agreement and is attempting to shift blame onto Cairo.

“Israel is doing this to distract from its internal problems, including public discontent over its ballooning defense budget,” Farag told Asharq Al-Awsat.

“It also wants to deflect attention from Egypt’s reconstruction plan for Gaza and leverage its claims to pressure the United States for more military aid by portraying Egypt as a threat.”

Farag emphasized that Egypt’s actions are solely aimed at protecting its national security, adding: “There is no clause in the peace treaty that prevents a country from defending itself.”

“The so-called ‘military infrastructure’ Israel refers to consists of roads and development projects in Sinai.”

“The US has satellite surveillance over the region—if Egypt had violated the treaty, Washington would have flagged it. Moreover, security coordination between Egypt and Israel continues daily,” he explained.

Egypt and Israel signed their landmark peace treaty on March 25, 1979, committing to resolving disputes peacefully and prohibiting the use or threat of force. The agreement also established military deployment guidelines and a joint security coordination committee.

Meanwhile, US Republican Party member Tom Harb told Asharq Al-Awsat that Washington has received intelligence from multiple sources indicating that Egypt has amassed a significant military force in Sinai.

Israel considers this a breach of the peace treaty, which designates Sinai as a demilitarized zone to prevent surprises like the 1973 war, Harb said.

While the US fully supports Israel’s concerns, it also wants to prevent further escalation, as that would destabilize the region, he added.

Ultimately, Egypt must clarify whether its troop movements are aimed at threatening Israel or preventing Palestinians from crossing into Egyptian territory, he stated.