Qatar Signs Deal to Ensure Gas Supply to Gaza Power Plant

Qatar reached an agreement in February to deliver natural gas from Israel to the Gaza Strip's sole power station

Reuters
Reuters
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A Palestinian man sells falafel as he uses a battery-powered lamp during a power cut in the northern Gaza Strip.
A Palestinian man sells falafel as he uses a battery-powered lamp during power cut in the northern Gaza Strip.Credit: MOHAMMED SALEM/ REUTERS
Reuters
Reuters

Qatar will establish an escrow account with Gaza's electricity companies to cover the costs of gas supply and power generation through Gaza's only power plant, the Qatari Foreign Ministry said Friday.

Under the deal, the Qatari committee will be the main owner of the account and will organize and manage the payments through it, while the Gaza Electricity Distribution Company will deposit $5 million per month when the gas power plant starts operating, the statement added.

Gas-rich Qatar used to spend $30 million per month to help operate the coastal Gaza's sole power plant and to support needy families and Hamas-hired public servants.

The account's establishment represents the latest development in Qatari efforts to provide natural gas to the Gaza Strip, where rolling blackouts are the norm.

Qatar reached an agreement in February to deliver natural gas from Israel to the Gaza Strip's sole power station. The agreement was reached after negotiations with the Palestinian Authority, Israel's Delek gas company, representatives of the Quartet on the Middle East, and other international figures. 

While Qatar has pledged millions towards installing the necessary gas pipeline, which would extend from the power station to an offshore gas rig, there is no clear timeline for the project's completion.

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