By: Aryeh Savir
Israeli Minister of Energy Yuval Steinitz and Egyptian Minister of Energy Tarek El Molla met on Sunday and discussed joint energy ventures, including energy projects for the Palestinian Authority.
The ministers met in Jerusalem in a meeting that was described as historic and discussed the promotion of cooperation in the field of energy between Israel and Egypt, which will ensure energy security for the two countries.
They agreed to work on an intergovernmental agreement to run gas from Israel’s Leviathan gas field to the Liquefied natural gas (LNG) facilities in Egypt.
Against the background of increased cooperation in the field of energy and the establishment of the Eastern Mediterranean Gas Forum (EMGF), established by Steinitz and El Molla, the ministers expressed their support for building a strong and well-connected energy infrastructure throughout the Eastern Mediterranean to optimize the potential of natural gas reserves in the region.
The ministers also referred to the importance of achieving the 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, as well as the global climate targets, including the reduction of emissions by 2050 and other environmental targets.
The ministers also discussed the various opportunities for increasing energy independence for the Palestinian Authority, including through projects such as the development of the maritime field in Gaza, the construction of the Jenin power plant, and the supply of natural gas to the PA.
The two “acknowledged that strong energy cooperation between the two countries contributes to energy security and energy diversification, while further strengthening the ongoing regional dialogue through the EMGF, regarding the development of the regional gas market while exploiting the full potential of gas resources in the region, and setting the platform for a multifaceted and complete trade center in the region” Israel’s Ministry of Energy stated.
Italy, Greece, Jordan, Israel, Egypt, Cyprus, and the Palestinian Authority are members of the EMGF.
Some 35 trillion cubic feet of gas have been found in Israeli waters, worth some $500 billion.
These crucial discoveries are enabling Israel to become energy independent and have also turned Israel into a major player in the international energy-exporting market.
The Israeli government is expected to earn NIS 17 billion in royalties from the gas discoveries. Additionally, the windfall profits levy is expected to reach up to 10 billion a year by 2040.
The Israeli government approved in December 2019 the export of a total of 60 billion cubic meters (bcm) of natural gas from the Leviathan gas field, and 25 bcm from Tamar, over the next 15 years.
The expected amount of exported natural gas is valued at approximately $15 billion.
In a historic event, Israel began pumping gas to Egypt in January 2020.
This also allows Israel to export some of its natural gas to Europe through Egypt’s LNG facilities and promote Egypt’s status as a regional gas hub.
Israel further has a signed deal with Greece and Cyprus to build a natural gas pipeline that will supply gas from the East-Mediterranean region to continental Europe.
(TPS)
