In light of the fantastic Middle East news, planning for the redevelopment of Gaza is underway. The Gaza Marine Gas Field should be a high priority given the power generation and revenue potential.
The field, which was discovered in 1999 by British Gas (now part of Shell), is located approximately 30-36 km off the coast of Gaza in the eastern Mediterranean and has estimated natural gas reserves of ~ 1 Tcf.
Who should be licensed to develop the field? In June 2023, there was a proposed agreement between the Palestinian Authority and an Egyptian consortium led by state-owned Egyptian Natural Gas Holding Company (EGAS). A resurrection of this arrangement may align with Palestinian interests. EGAS has experience in Mediterranean gas projects including the giant Zohr field (see map below).
Other candidates for developing the Gaza Marine field (pure speculation):
- Chevron would be a logical choice given their extensive eastern Mediterranean experience as a result of their acquisition of Noble Energy. However, there might be concerns about undue US and Israeli control of this important resource.
- Regional giants like Saudi Aramco, Qatar Energy, and Abu Dhabi National Oil Company (ADNOC) would be good candidates.
- Another interesting possibility might be Equinor, which is 2/3 owned by the Norwegian govt. Equinor seems to sometimes make socially desirable investments that are less profitable.
Some combination of the above companies might also be a possibility. In any event, it’s critical to manage this resource in a manner that best benefits the recovery effort.
Bud's Offshore Energy (BOE) 