MAJOR NEWS: Arab country signs massive energy deal to import Israeli natural gas

Israel as a new major exporter of energy is a major game changer, with serious security and geo-political implications.

By Nosson Shulman: Licensed Tour Guide of VIP Israel Tours & Authentic Virtual Tours (click here to check out his free trailer videos)

Egypt and Israel have signed a major deal, entailing major implications for the world.  An underwater pipeline is to be built in the Eastern Mediterranean, connecting Israel’s offshore rig in the Leviathan field (Israel’s largest natural gas reserve) bringing the gas directly to Egypt’s liquidation facilities where the gas will be turned into liquid for easy export to Europe.

The idea that Israel would be an energy exporter was considered preposterous.  Since its founding in 1948, Israel has been reliant on oil, coal, and gas from abroad, particularly Russia, Norway, Azerbaijan and (until 1979) Iran.  Israel’s oil rich neighbors in the Middle East did not recognize Israel and refused to sell to them.  Israel had no choice, but to shell out large sums of money to transport energy from other, willing countries.  Since Israel relied on Russian energy, Russia (a major trading partner of the Arab world) was able to use this leverage to get Israel to make decisions which were not necessarily in Israel’s best interests, including militarily, fighting terrorism or projects in Judah and Samaria.  In addition, the Arabs weaponized their resources, such as putting oil sanctions on western countries depending on them and influencing their foreign policy vis a vis Israel.

Everything changed in 2009, when natural gas was discovered off the coast of Haifa.  Israel immediately began working to build pipelines and infrastructure to export its gas.  In the interim, Jordan and Egypt signed major, multi-year deals with Israel to buy their gas to the tune of a combined 30 Billion dollars US.  On December 16 2019, Israel officially became a major energy exporter, sending massive amounts of gas to Egypt for the first time.

In 2018 with the backing of the EU, Israel, Greece, Cyprus, Italy, and Crete agreed to build the world’s longest underwater pipeline (more than 1300 miles) to export Israel’s gas to these countries, who in turn would export Israel’s gas to the rest of Europe.  The EU is currently dependent on Russian gas.  No longer wishing to be reliant, they would like to be free to take a more aggressive stance against Russian policies in Eastern Europe (such as the Crimea) and domestic politics like the jailing of political opponents of Putin.

In September 2020, Egypt and Jordan joined with Israel, Greece, Cyprus, Italy, and Crete to create the East Mediterranean Gas Forum (EMGF).  Countries such as France have applied to join with the US and EU requesting observer status.  Israel’s gas fields have clearly raised its profile worldwide!

The implications could not be bigger!  With Israel less dependent on foreign energy, it has more freedom to act against threats to its security, with less fear of economic sanctions from its major trading partners.  In addition, with the 1300-mile pipeline set to be operational by 2025, Europe will have a freer hand to act against what it sees as Russian aggressions.  The fact that the world is less dependent on Arab oil (including the US which became energy independent itself for the first time under the previous administration) means that the Arab countries and Iran will be less able to influence foreign policies in the west.  Because international terrorism is largely (though not entirely) paid for through the middle eastern oil trade (in the past, every time you pumped gas, there is a good chance you were unwittingly funding international terrorism), terror supporting countries have less money to distribute to terrorist groups who have been suffering from major cash flow problems in the last few years.

Many countries around the world, especially in developing nations, have become dependent on Israeli water/agricultural technological know-how and medical research. Israel has used this leverage to build brand new relationships with countries, many of whom had not previously recognized Israel’s right to exist.  Many peace deals have been signed, making the world a safer place.  Now with its new energy resources, the sky’s the limit!

Nosson Shulman is a journalist and Licensed Tour Guide in Israel specializing in Biblical tours. To allow tourists to experience Israel during the Corona era, he created the new hit Israel tour video series which brings Israel to the home of viewers by simulating actual tours. To check out his free sneak preview tour videos, click here.