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Confidential – Not for Distribution
Gas for Gaza (G4G) Gaza Central Desalination Plant & Associated Works Information Session April 2019 Confidential – Not for Distribution
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Gas for Gaza (G4G) project - Gaza’s connection to the Israeli natural gas network
Executive Summary - G4G is implemented through the Office of the Quartet (OQ) - led Task Force with full support of the PA and the GoI The Dutch Government - critical funding and support since late 2015, including recently the funding decision for the Detailed Design for both Israel and Gaza EU officially commenced supporting the project in 2018 G4G is the central solution to Gaza’s energy deficit and basis for economic development G4G will contribute to ensure the long term viability of key water infrastructure projects, including the Gaza Central Desalination Plant G4G - affordable, reliable and sustainable fuel supply significant increase in domestic electricity generation on a cost-efficient basis Significant progress has been made with G4G since its launch in 2015: completion of legal, technical & commercial feasibility studies approval of pipeline route in Israel, statutory planning process nearly complete for IL, pipeline detailed design to commence shortly Gaza Impact Assessment Study nearly complete significant progress has been made with the project’s commercial structure
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Natural gas will significantly increase Gaza’s energy supply
796 654 675 558 582 496 517 473 Electricity Demand – Low Case Electricity Demand – High Case (Israel, Egypt, Renewables)
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Technical feasibility studies identified the pipeline route, cost and engineering requirements
Technical feasibility studies identified the pipeline route in Gaza and Israel In September 2016, the ‘East West Route’ (E-W) was approved by the Government of Israel The pipeline route is approximately 44km ~40km in Israel ~4km in Gaza The approximate cost of the pipeline is ~$80MUSD. ~$65mm in Israel ~$15mm in Gaza
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G4G PIPELINE COMMENCES OPERATION
G4G project has advanced from conceptual to implementation phase, supported by the Task Force, since it was launched in 2014 G4G initiated by the OQ, with the encouragement of the PA and GoI Commercial and legal feasibility studies concluded Start of detailed design for Israel and Gaza Start of EPC phase (Gaza and Israel) Statutory planning process for the pipeline in Israel commences High-level impact assessment study concluded Dutch Government commences support to the G4G Task Force 2014 2016 2018 2020 2022/3 2015 2017 2019 2021 GoI announces official support for the project GoI announces approval of pipeline route EU announces formal support to the project Environmental impact assessment (Gaza) Start of GPP conversion from diesel to gas OQ mandated by Palestinian Prime Minister to lead the G4G Task Force to facilitate project implementation PA approval of pipeline route (Gaza side) G4G PIPELINE COMMENCES OPERATION Technical feasibility studies concluded Commercial framework identified and negotiations commence
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G4G Project has gathered broad political, financial and technical support from a wide range of stakeholders Rami Hamdallah, Prime Minister of Palestine: Statements at AHLC , as conveyed by PA reps to the G4G TF, and at the Palestinian Cabinet Meeting 6 February 2018, where the Prime Minister called upon the international community to pledge funding for the implementation of several viable development projects in Gaza including G4G and the GCDP. Zafer Milhem, Chairman of the Energy Authority PENRA Gaza Strip Power Sector Short & Med Term Development Plan 2017, 10 January 2018 Benjamin Netanyahu, Prime Minister of Israel: “We want to help the population of Gaza and the first step is to improve the supply of energy and water…including laying a gas pipeline” (State visit to the Netherlands, 2016) Hon. Tzachi Hanegbi, Minister for Regional Cooperation, AHLC (2016, 2018): “It is necessary to complete the Gas for Gaza program (…) It has the potential to double Gaza’s electricity supply in the near term and as much as quadruple it in the future” Karel J.G. van Oosterom, Permanent Representative of the Kingdom of the Netherlands to the United Nations in New York: “the Kingdom of the Netherlands remains committed to doing its part. Let me give three examples: (…) Our continued investment in the Gas for Gaza project” (Security Council Briefing: Middle East, 2018) Commissioner Hahn’s and Director Michael Köhler’s statement of political support and openness to consider financial support from the EU for G4G (March 2018)
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Ariel M. Ezrahi Director of Energy Office of the Quartet Phone: (0)
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