How Israel – Lebanon agreement can be a real boon for natural gas market?
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Alaina
- . October 28, 2022
- . Update: November 11, 2022 1:20 am
Earlier this month, Israel and Lebanon reached a historic agreement over their maritime border in the Mediterranean Sea – a move that can be a boon towards improving diplomacy for bolstering natural gas output of both the nations. This deal can be a real game changer for the global gas market as the world grapples amid limited energy supply.
The final agreement between the nations is expected to “strengthen Israel’s security, inject billions into Israel’s economy, and ensure the stability of our northern border”, according to Israeli Prime Minister Yair Lapid. Meanwhile, President of Lebanon Michel Aoun also stated that the deal “satisfies Lebanon, meets its demands, and preserves its rights to its natural resources.”
Israel will now be able to produce natural gas from the Karish maritime reservoir. This reservoir along with the Tanin field is believed to hold 2 to 3 trillion cubic feet of natural gas and 44 million barrels of liquids. This is a significant change in Lebanon’s stand that was claiming a part of the Karish field. Meanwhile, Lebanon is going to exploit Qana, the neighboring oil field.
Read | Israel Lebanon To Enter Into Mutually Benefitting Maritime Deal Soon
The agreement has rendered a ray of hope for particularly Europe and North America who are looking forward to the agreement help alleviate the gas shortages across the world. Maha Yahya, director of the Beirut-based Carnegie Middle East Centre is hopeful of what the deal represents, “The agreement means that both countries now have vested economic interests in maintaining calm along their common border regions.”
The US brokered deal has been touted by President Joe Biden as a big geopolitical win. “The agreement… will provide for the development of energy fields for the benefit of both countries, setting the stage for a more stable and prosperous region, and harnessing vital new energy resources for the world,” Biden said in a statement. Prime Minister Lapid of Israel celebrated the agreement as he said, “This is a historic achievement that will strengthen Israel’s security, inject billions into Israel’s economy, and ensure the stability of our northern border.”
