Israel to Produce Gas in Disputed Waters Ahead of Maritime Border Agreement with Lebanon

Expectations for Resolving European Energy Crisis
Biden Praises as "Historic Breakthrough"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Israel has started gas production at the Karish gas field located in the disputed maritime area of the Eastern Mediterranean, one day before reaching an agreement with Lebanon on maritime boundary delimitation. Since the 2000s, the two countries have been disputing sovereignty over the contested waters, but with the U.S. mediation leading to a successful boundary delimitation and the commencement of gas production, it is expected to significantly help alleviate Europe’s energy crisis.

According to CNN on the 26th (local time), Energean, the British energy company acting as the developer of Israel’s Karish gas field, stated in a press release, "Gas production has started at the Karish gas field in the Eastern Mediterranean," adding, "Gas production has begun at the Karish Main-02 gas field, and production at Main-01 and Main-03 gas fields is expected to start within 2 to 4 weeks."

Matthios Rigas, CEO of Energean, emphasized, "We have achieved a groundbreaking project that secures Israel’s competitiveness in the gas market, strengthens energy security in the eastern Mediterranean region, and supplies clean energy to replace coal power generation." Earlier, Israel’s Ministry of Energy authorized the start of production at the Karish gas field the previous day, and drilling began on the same day.

According to the Associated Press, although Hezbollah, the armed faction in Lebanon, opposed the gas drilling before the agreement signing, calling it a "violation of the agreement," the Lebanese political sphere is generally reported to be accepting of Israel’s gas production.

The gas field is located in the disputed maritime area between Israel and Lebanon, and since the early 2000s when natural gas and oil were discovered in the area, the two countries have continuously disputed sovereignty.

As the sovereignty dispute intensified, U.S. mediation began last year. After U.S. Special Envoy for Energy Amos Hochstein shuttled between the two countries, they agreed on June 13 to accept the maritime boundary delimitation plan proposed by the U.S., with a signing ceremony scheduled for the 27th.

The final delimitation plan grants Lebanon rights over the 860㎢ disputed maritime area, while Israel will gain international recognition of the "Line of Buoys," a maritime boundary important for security.

Israel will develop the Karish gas field located in the disputed waters, while Lebanon will develop the Qana and Sidon gas fields. Israel has agreed to receive a portion of the revenue generated from the development of the Lebanese gas fields as a usage fee.

The U.S. government also expressed its welcome for the maritime boundary delimitation agreement between the two countries. During a meeting with Israeli President Isaac Herzog at the White House, President Biden referred to the delimitation agreement, calling it a "historic breakthrough." He added, "It took a lot of courage for Israel to take this step forward, and principled and persistent diplomacy was necessary to accomplish this," praising the agreement highly.

Within Israel, there has been some opposition to the government pushing the maritime boundary delimitation unilaterally, but opposition to the delimitation plan itself is reported to be minimal. According to local media such as The Times of Israel, opposition voices arose when Prime Minister Aryeh Lapid rejected the opposition’s demand that the parliament approve the sovereignty delimitation plan, but the majority of lawmakers support the plan.

Meanwhile, with this gas field development, European countries struggling with soaring natural gas prices due to Russia’s invasion of Ukraine are expected to have a new alternative supply chain.

This content was produced with the assistance of AI translation services.