More gas discovered off coast of Israel as Lebanon talks falter

The London-based natural gas exploration company Energean announced a new discovery off the coast of Israel today. Energean has identified seven to 15 billion cubic meters of natural gas in the Hermes exploration well, according to a press release. 

Why it matters: The news follows Israel’s maritime border negotiations with Lebanon hitting a roadblock. Israel discovered natural gas in the eastern Mediterranean in 2009 and began production in 2013. However, Lebanon claims part of the area as its own territorial waters. Negotiations over the issue began in 2020 with US mediation. 

Last week, the Israeli government said that they reached a US-proposed deal with Lebanon whereby they would concede the disputed arena in exchange for Lebanon paying royalties to Israel. However, Israel said today that it rejected Lebanon’s latest counter-proposals. 

Hermes is located southeast of Israel’s Karish gas field, meaning it does not lie within the disputed area with Lebanon. 

Know more: The discovery of natural gas has been beneficial to Israel. The country inked a gas export deal to Europe via Egypt in June, for example. 

Lebanon, which has chronic electricity shortages, could benefit from a domestic supply of natural gas. However, it would take years for the gas to reach consumers, especially considering Lebanon’s governance, infrastructure and economic issues.