Confident Egypt strikes Israeli-Palestinian gas deals

Significance

The agreement with Israel is to construct a pipeline from the Leviathan offshore gas field; the agreement with the PA is a non-binding memorandum of understanding about investing in the Gaza Marine project. The agreements are among Egypt's higher-profile interventions in the wider East Mediterranean gas sector for several years.

Impacts

• Egypt is unlikely to have the financial resources to undertake investment in the Gaza Marine field.
• Israeli obstruction and Palestinian disunity will continue to block progress on developing Gaza Marine.
• Egypt is more inclined to engage publicly with Israel and less concerned about a popular backlash against such engagement.