Lebanon and Israel face more offshore gas challenges

Significance

The pipeline to deliver Eastern Mediterranean gas to European markets would begin by supplying Italy from Israeli offshore fields, including Karish, which produced Israel’s first-ever oil export cargo on February 15. Karish was formerly disputed with Lebanon, which is also looking to develop its offshore gas.

Impacts

• Corruption allegations and economic freefall will deter further foreign investment in Lebanon’s oil and gas sector.
• Political differences will block a tripartite Lebanon-Cyprus-Syria deal on delineating maritime borders.
• Israel will struggle to attract the investment required to achieve a step-change in its gas export capacity.