Development of the Marine gas field off the Gaza coast is a new element that could and should help in this regard. The development could take place under the auspices of the Eastern Mediterranean Gas Forum (EMGF) established last year in Cairo. That would allow the sides to overcome the internal Palestinian political crisis stemming from the split between Hamas and the PA and hampering the development of the gas field. It could also resolve the severe crisis in the Palestinian energy sector and ease the economic hardship in the Gaza Strip.

The gas field was discovered in the year 2000 some 36kms offshore at a depth of 600 meters. Estimated to hold about 1 TCF, making it smaller than other fields discovered in the region, the Marine field is commercially viable. The reservoir was discovered by British Gas, which was subsequently bought by Shell. Once it transpired that prospects of developing it were slim, Shell sold its share to the PA, which is currently the largest owner along with the Palestinian-Lebanese Consolidated Contractors Company.

Many contacts were held over the years about possible development of the Marine reservoir, with Israel’s involvement, but nothing came of them largely for political reasons. Once Hamas took over Gaza in 2007, attempts to move forward the possible exploitation of the gas field came to a halt. These were renewed in 2013 around the efforts, ultimately unsuccessful, by then-Secretary of State John Kerry to advance Israeli-Palestinian peace. Reported interest on the part of Russia and Energean Oil & Gas did not mature into concrete steps. Israeli Energy Minister Steinitz was quoted as telling participants of a January 2020 EMGF meeting in Cairo that contacts were underway between Israel and the Palestinians regarding possible gas sales to the PA in the West Bank, including the possible development of the Marine field. No additional details were announced and the Palestinian response was on the chilly side.

It is worth examining the interests of both Israel and the Palestinians in this regard. Israel’s interest in reaching an arrangement on Gaza to prevent further military clashes is obvious. The Netanyahu government has in recent years expressed trust in possible long-term understandings with Hamas. Such a view fits in with the idea of “economic peace” that Netanyahu is promoting and is also in tune with the Trump plan (even though the plan is not expected to generate a real diplomatic process). In this context, there is also a convergence of interests between Israel and Egypt, which allows tight coordination of positions. Both states are interested in preventing escalation with Gaza and in progressing toward a longterm arrangement.

On the Palestinian side there are two players. The Hamas movement, which has adapted itself to the changes in the Middle East following the Arab Spring and to its room for maneuver vis-à-vis Egypt, is interested in an arrangement that would guarantee its control of the Gaza Strip. Hamas is seeking to achieve this goal in a way that would also provide it flexibility within the Palestinian arena in the future. As far as the PA is concerned, its weakness is clear, intensified by the waning days of Mahmoud Abbas. An arrangement over Gaza that would allow leadership by the PA, including progress on developing the Marine gas field, would serve its interests.

The obstacles and difficulties facing progress in developing the gas field are clear and significant. These include: Control of Gaza by Hamas, a terrorist organization and concern over empowering it at the expense of the PA; the absence of a diplomatic process between Israel and the PA and the deep mistrust between the sides; and the internal Palestinian political split between the PA and Hamas.

However, regional circumstances in the Eastern Mediterranean are creating an opening for positive change. In recent years, a roadmap for potential cooperation in this region is taking shape, based on the discovery of natural gas as well as the repercussions of the Arab Spring. The most prominent institutional expression of the emerging regional structure is the EMGF, established in Cairo in early 2019, which is undergoing international institutionalization this year. It currently includes seven members – Egypt, Israel, Greece, Cyprus, Italy, Jordan and the PA, and is supported by the EU and the US. The participation of the Palestinians in this forum is significant, and serves a clear Egyptian interest, which is also acceptable to Israel. The gas forum could serve to develop the Palestinian gas field from both a diplomatic and energy perspective.

From a diplomatic perspective – developing the gas filed under the umbrella of the EMGF could provide a convenient framework for the relevant players – Israel, the Palestinians and Egypt. It could be regarded, rightly so, as an expression of regional cooperation based on converging interests.

From an energy point of view – a possible link of the gas field to Egypt, which constitutes a key diplomatic and energy player, could help resolve various disagreements and sensitivities. Egypt is interested in boosting its status as a regional energy hub, which also serves the Israeli interest (for now). Shell, which sold its share in the Marine field is still active in the region (it holds a 30 percent share of the Cypriot Aphrodite gas field) and owns liquefaction facilities in Egypt.

What should Israel do?

Accelerate diplomatic moves to reach an arrangement over Gaza – this requires aligning positions and consulting with Egypt, and renewal of activity vis-à-vis Hamas and the PA, including on the issue of the Marine gas field development. Israel must restore trust with the PA and make it clear that it wants to restore the PA to a leading and more prominent role vis-à-vis the Gaza Strip;

Mobilize US support – Israel must update the US administration regarding its thinking on the development of the gas field as part of the arrangement with Gaza and ensure its support;

Create an economic-energy discourse on Palestinian gas – restore the development of the gas field to a high place on the agenda of the relevant players, including energy companies, and stir up their renewed diplomatic and economic interest in this issue;

Re-examine key issues – should Israel advance a direct link of the Gaza field to Egypt, for example to the pipeline through which Israel already exports gas to Egypt (if this is technically feasible) and thereby circumvent Palestinian disinterest and distrust of what could be considered an Israeli takeover of the gas? Can it be useful to also add a Cyprus angle to this endeavor, for example through involvement of Shell company?

Reaching a long-term arrangement between Israel and Gaza requires a complex and complicated process. Development of Gaza’s offshore gas field could and should constitute a concrete catalyst for such a process, as it addresses key interests of the relevant players. This idea also promotes a vision of regional, Mediterranean cooperation, in which the international community plays an important role in attempts to stabilize a bloody conflict.

הפוסט The Diplomatic Potential in Developing Gaza’s Offshore Gas Field הופיע לראשונה ב-Mitvim.

Given the protracted freeze of the Israeli-Palestinian peace process and growing tensions generated by Prime Minister Benjamin Netanyahu’s annexation intentions, the Israeli and Palestinian willingness to jointly participate in establishing a new organization is a bright spot not to be taken for granted. The fact that the EMGF includes European and Arab states as full members, as well as the US, EU and other international organizations (such as the World Bank) as observers, further highlights the unique nature of this development.

The underpinning of the new organization is economic, with its members seeking to cooperate in maximizing the energy reserves discovered in the Mediterranean over the past decade. Israel is generally deterred by international groupings, fearing members’ pressure regarding its policy on the Palestinian issue. However, although it initially preferred that the gas forum remain a non-binding body, Israel eventually agreed to its institutional upgrading, probably at Egypt’s behest.

While Israel, Greece, Cyprus and Italy are discussing the construction of a gas pipeline from Israel to Europe – a project whose economic, technical and diplomatic feasibility is highly doubtful – the new organization positions Egypt as a regional energy hub with its gas liquefaction facilities that enable gas exports to Europe without a pipeline.

The make-up of the current forum is unique, but need not be finite. Lebanon and Turkey are two important regional players currently absent from the EMGF due to disputes and confrontations with forum members. However, in order to realize the cooperation potential in the Eastern Mediterranean, the organization should seek to draw them into its ranks in the future. The UN, too, which plays a role in mediation tasks in the Mediterranean region – between Israel and Hamas, Greek and Turkish Cypriots, and Israel and Lebanon in marking their maritime borders – could also be represented as an observer.

The organization has diplomatic, not just economic, potential, including to support Israeli-Palestinian peacemaking efforts. In recent years, no multinational organizations have been active in this regard. Under the Trump administration, the Quartet (the US, EU, Russia and the UN) lost whatever limited importance it had beforehand.

French-led efforts to set up an international support group for the peace process were unsuccessful. The absence of an influential multinational body makes it difficult for the international community, for example, to implement its plan to introduce a coordinated package of political and economic incentives for Israeli-Palestinian peace.

The EMGF could be an asset for a new Israeli leadership wanting to re-start the peace process and striving to link regional ties to the Palestinian issue. Until such time, and beyond constituting an additional channel to the PA, the new organization could advance Israeli peace ties with Egypt and Jordan.

ISRAELI GAS exports to Egypt and the visits by Israel’s energy minister to Cairo for meetings of the forum are already making a difference in relations. Nonetheless, Israel does not have an ambassador in Cairo, even though the foreign minister approved the appointment of Amira Oron to the post about a year-and-a-half ago. The government has repeatedly avoided approving the appointment and fixing this should be a high priority for the next government.

As for ties with Jordan, cooperation on the gas issue has yet to generate a positive momentum in the relationship. Instead, it has been met with public and political protests in Jordan against the backdrop of the harsh crisis of trust between the two. Jordan’s King Abdullah recently declared that the relationship was at its lowest ebb, and clearly, only a change in Israeli policy on the Palestinian issue as well as prioritizing the rehabilitation of links with Jordan could change that.

Benny Gantz has already issued messages in that direction when he addressed a ceremony in Naharayim marking the 25th anniversary of the peace treaty. The new organization could also help improve Israel’s relations with the EU following several tense years.

The EMGF links Israel and European states in a manner that has won EU approval and that is not viewed in Brussels as a move designed to split and weaken the EU – unlike the alliance Netanyahu forged with the Visegrad Group, especially Hungary. The participation of France in the new organization can also assist – given a new Israeli leadership – to overcome obstacles that prevent the renewal of the high-level political dialogue between Israel and the EU (the Association Council).

For Israel to effectively make the most of the opportunity provided by the new organization, it must learn the lessons of its conduct in other regional and international organizations. Budgetary difficulties – coupled with a general skepticism towards such organizations – limited Israel’s ability to take full advantage of similar opportunities in the past.

For example, Israel held the position of deputy general secretary of the Union for the Mediterranean, which it gave up due, also due to its Foreign Ministry’s financial crisis. Israel also has financial debt to the UN, which casts a shadow over its activity there.

Strengthening the Foreign Ministry can help resolve such issues and realize the potential of Israeli membership in the EMGF. It is the Foreign Ministry that should play a leading role when it comes to Israeli participation in international organizations, unlike the current situation with the EMGF in which it is the Energy Ministry that is mostly in charge.

The establishment of the new organization in the Mediterranean is more than just an important economic development. It is also a diplomatic opportunity for Israel. The next Israeli government would do well to leverage the EMGF not only for the economic profit it can generate from the country’s gas reserves, but also for diplomatic gains that advance Israeli-Palestinian peace and broader regional cooperation.

The writer is the founder and head of Mitvim-The Israeli Institute for Regional Foreign Policies, and a lecturer at the Hebrew University of Jerusalem.

(originally published in the Jerusalem Post)

הפוסט Gas forum a diplomatic opportunity for Israel הופיע לראשונה ב-Mitvim.