Discovered in 2000, there are extensive gas reserves off the Gaza coastline:

"It should be noted that 60 percent of the gas reserves along the Gaza-Israel coastline belong to Palestine.

The BG Group drilled two wells in 2000: Gaza Marine-1 and Gaza Marine-2. Reserves are estimated by British Gas to be of the order of 1.4 trillion cubic feet, valued at approximately 4 billion dollars. These are the figures made public by British Gas. The size of Palestine’s gas reserves could be much larger.

Who Owns the Gas Fields?

The issue of sovereignty over Gaza’s gas fields is crucial. From a legal standpoint, the gas reserves belong to Palestine.

The death of Yasser Arafat, the election of the Hamas government and the ruin of the Palestinian Authority have enabled Israel to establish de facto control over Gaza’s offshore gas reserves.

British Gas (BG Group) has been dealing with the Tel Aviv government. In turn, the Hamas government has been bypassed in regards to exploration and development rights over the gas fields.

In 2006, British Gas “was close to signing a deal to pump the gas to Egypt.” (Times, May, 23, 2007). According to reports, British Prime Minister Tony Blair intervened on behalf of Israel with a view to shunting the agreement with Egypt.

Gaza and Energy Geopolitics

The military occupation of Gaza is intent upon transferring the sovereignty of the gas fields to Israel in violation of international law."

Global Research — 8 January 2009

A Palestinian source yesterday denied Israeli reports that an Egyptian-Palestinian-Israeli agreement had been made to extract gas off the Gaza Strip, describing them as “inaccurate”.

The source, who preferred not to be named, told the Anadolu news agency that consultations with Egypt on developing the field did not mention the Israeli side at all, adding “we will not pay Israel to extract what belongs to us”.

“This is unacceptable. Israel is required not to obstruct the work only,” the source added.

On Monday, the Palestinian government announced the formation of a ministerial committee to follow up with the Palestinian Investment Fund on concluding an agreement with Egypt to finance and operate the Palestinian gas field off the Gaza Strip, known as the Gaza Marine Field.

On Tuesday, the Israeli Broadcasting Corporation (Kan) reported that “Egypt, Israel and the Palestinian Authority have agreed to develop the natural gas field off the Gaza Strip.” It added that profits from the field will go to the Palestinian Authority and Israel.

Located 36 kilometres west of Gaza, the Gaza Marine Field is believed to contain about 1.1 trillion cubic feet of natural gas. This is equivalent to a production capacity of 1.5 billion cubic metres annually for a period of 20 years.

Middle East Monitor — 9 October 2022

GAZA CITY, Palestine

The Palestine Investment Fund (PIF) is close to reaching a technical deal with the Egyptian Natural Gas Holding Company (EGAS) to extract gas from the Marine gas field off the shore of Gaza, according to a Palestinian source on Sunday.

The source told Anadolu Agency that both sides will sign the deal at the end of 2022 under which they will agree on the distribution of the shares and the mechanism to sell the gas.

The PIF, which is the official Palestinian sovereign fund, and the Athens-based Consolidated Contractors Company (CCC) have 27.5% shares each in the Marine gas field, while the remaining 45% would go to the operating company.

After the signing of the deal, EGAS will take the necessary measures to develop the gas field in order to be operational within 30 months.

The source didn't give any details on Israel's position on the deal but said the operation of the field will be in agreement with all relevant actors.

The Marine 1 field, Gaza’s first gas field, was discovered in the 1990s in the enclave’s territorial water. The field is 36 kilometers (23 miles) west of the Gaza Strip in the Mediterranean waters and was developed in 2000 by the British Gas company.

The Marine 2 field is located in the sea border area between Gaza and Israel. Yet, the Palestinians were unable to utilize both gas fields due to Israeli opposition.

Home to 2.3 million population, the Gaza Strip has been reeling under a years-long Israeli blockade since 2007, badly affecting livelihood in the territory.

Anadolu Agency —9 October 2022.