A decade after discovering natural gas fields off its Mediterranean coast, Israel is starting to feel the geopolitical boost.
Its newfound riches have fostered economic bonds with its neighbors, tightening relations with Arab allies, and built new bridges in a historically hostile region — even without significant progress being made toward peace with the Palestinians.
Last week’s inclusion of Israel into the Eastern Mediterranean Gas Forum in Cairo — a consortium aiming to cut infrastructure costs and lower prices — marked the first time Arab countries accepted Israel into such a regional alliance, sparking excitement in the country that its long-held hope of finally also making “economic peace” with Egypt and Jordan was fast approaching.
“I think this is the most significant economic cooperation between Egypt and Israel since the signing of the peace treaty 40 years ago,” Israeli Energy Minister Yuval Steinitz told The Associated Press during his visit. “The discovery of significant gas fields in the eastern Mediterranean has also political value because it brings all of us … together to cooperate with each other.”
This is very significant having Israel in a Middle Eastern economic alliance.
The forum, which also includes Cyprus, Greece, Italy and the Palestinian Authority, aims to emerge as a mini-OPEC of sorts and highlights how Israel has been leveraging its newfound gas reserves into a powerful tool to expand its immersion into a region that has increasingly come to see Iran and Turkey, rather than Israel, as their greatest rivals.
With the expected gas boon, Israel plans to wean itself off coal and emerge as an unlikely energy exporter — providing both an economic and political lift.
In the coming months, Israel will begin exporting gas to Egypt as part of a $15 billion deal signed last year to provide 64 billion cubic meters of gas over a 10-year period that will help turn Egypt into a regional energy hub.
Excellent. Countries that trade together tend to not get into armed conflict.