GAZA CITY, Palestine

The Palestine Investment Fund (PIF) is close to reaching a technical deal with the Egyptian Natural Gas Holding Company (EGAS) to extract gas from the Marine gas field off the shore of Gaza, according to a Palestinian source on Sunday.

The source told Anadolu Agency that both sides will sign the deal at the end of 2022 under which they will agree on the distribution of the shares and the mechanism to sell the gas.

The PIF, which is the official Palestinian sovereign fund, and the Athens-based Consolidated Contractors Company (CCC) have 27.5% shares each in the Marine gas field, while the remaining 45% would go to the operating company.

After the signing of the deal, EGAS will take the necessary measures to develop the gas field in order to be operational within 30 months.

The source didn't give any details on Israel's position on the deal but said the operation of the field will be in agreement with all relevant actors.

The Marine 1 field, Gaza’s first gas field, was discovered in the 1990s in the enclave’s territorial water. The field is 36 kilometers (23 miles) west of the Gaza Strip in the Mediterranean waters and was developed in 2000 by the British Gas company.

The Marine 2 field is located in the sea border area between Gaza and Israel. Yet, the Palestinians were unable to utilize both gas fields due to Israeli opposition.

Home to 2.3 million population, the Gaza Strip has been reeling under a years-long Israeli blockade since 2007, badly affecting livelihood in the territory.

*Writing by Ahmed Asmar