Gaza Marine Opens the Gate of Economic Revival for Palestine

For years, Gaza, referred to by many as the largest open-air prison, has been plagued with the challenges of being one of the most densely populated and economically impoverished areas in the world. But that’s about to change with Europe’s increasing demand for LNG and Palestine’s willingness to export its rich natural gas reserves.
According to studies that have been conducted by experts, the tables are about to turn in Palestine’s favor as the Gaza Marine Field was found to have up to 1 trillion cubic feet of natural gas. Though massive in amount, the discovery has been sitting for more than two decades without being thoroughly exploited after its discovery in 2000 by the British oil and gas company BG Group.
What benefits could Palestinians get in exchange for exporting natural gas? For the most part, Gaza could eventually become self-sufficient and its dependence on Israel for importing its electricity needs. “One estimate is that the PA’s savings may reach $560 million annually by eliminating the need to import Israeli electricity. The PA burden will dramatically diminish if gas can be used to generate electricity there. [The current administration] may also see the indirect benefit to its standing with the [Palestinian residents of Gaza] who currently have access to less than 40% of their energy needs, and for whom electricity is available for only a few hours daily. Converting electricity generation from diesel to natural gas would also reduce pollution in Gaza, ensure a more reliable energy supply, and have huge developmental implications dramatically improving living conditions,” the United States Institute of Peace elaborated.
Currently, getting the field ready for production involves joint efforts from Egypt, Palestine, and Israel. The Egyptian Natural Gas Holding Company (EGAS), a state-owned natural gas company, will take an active role in developing the field, located approximately 30 km from the shores of Gaza.
The trilateral cooperation between Egypt, the Palestinian government, and Israel could also be used as a model to boost further regional cooperation. The United States Institute of Peace stipulates that “[…] if Israel is more forthcoming with Palestinians including on the Gaza Marine, this can potentially advance regional cooperation, which may even include Turkey, on issues pertaining to gas, electricity generation, linking electricity grids and perhaps also desalination and environmental challenges. Countries in the region would be able to consider how their bilateral gas deals could benefit from other ongoing gas projects, particularly in terms of possible joint utilization of infrastructure for cross-border transactions.”
Located in a tense and highly contested region, it can provide the financial returns and energy for a population that gets less than half of its energy needs. Experts and officials from many parts of the world have voiced their support for this ambitious project.