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Home News Middle East Palestinian Authority & Gaza Strip

Qatar to invest $60M in Gaza gas pipeline

Currently, Doha's aid to the Hamas-controlled coastal enclave includes fuel deliveries to the monthly tune of $7 million. The "Gas for Gaza" initiative could save the Palestinians $10 million a month, but finalizing the deal could still be years away.

by  Shachar Kleiman and ILH Arab Desk
Published on  12-27-2021 09:37
Last modified: 12-27-2021 09:38
Qatar to invest $60M in Gaza gas pipelineReuters/Ibraheem Abu Mustafa

Gaza's sole power plant in Nuseirat | File photo: Reuters/Ibraheem Abu Mustafa

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Qatar will invest tens of millions of dollars improving the power infrastructure in the Gaza Strip, the Gulf kingdom's envoy to Gaza Mohammad al-Emadi announced on Sunday.

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A major Hamas backer, Qatar has pledged some $360 million for Gaza's reconstruction following the Islamist terrorist groups' last conflict with Israel in May.

The Gulf energy-rich state has funneled some $1 billion into Gaza since 2012. Since 2018, it has been providing Hamas with monthly payments averaging $20 million, essentially covering Hamas salaries for its civil servants and providing monthly $100 stipends to scores of impoverished families.

Emadi said Sunday that Doha, the Palestinian Authority and Gaza's electrical company have signed a memorandum of understanding on a long-term project by which the only power plant in the coastal enclave will receive Israeli natural gas.

However, finalizing the "Gas for Gaza" initiative, projected to cost some $60 million, could still be years away, according to sources familiar with the issue.

Qatar's aid to the Strip includes fuel deliveries from Israel to the monthly tune of $7 million.

The deal would have to involve – other than Qatar, the PA and Israel – Hamas, Egypt and the European Union. According to Arab media reports, the proposal seeks to see natural gas pumped from Israel's Leviathan gas field to southern Israel and from there into Gaza. The EU and Qatar would then fund extending the pipeline into Gaza.

Emadi said that the plan strives to replace the diesel fuel currently used by Gaza's power plant with Israeli gas with the aim of eventually producing 500 megawatts. The latter should significantly alleviate the chronic electricity deficit that has been plaguing Gaza for years.

Speaking with Arab media last month, Emadi said that the initiative could save the Palestinians up to $10 million a month.

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