VZCZCXRO4260
PP RUEHROV
DE RUEHJM #2094/01 3241420
ZNY CCCCC ZZH
P 201420Z NOV 09
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC PRIORITY 6728
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 002094 
 
SIPDIS 
 
NEA FOR FRONT OFFICE AND NEA/IPA; PRM FOR FRONT OFFICE AND 
PRM/ANE; NSC FOR KUMAR; DEPT PLEASE PASS TO USAID FOR 
ANE/MEA:MCCLOUD/BORODIN 
 
E.O. 12958: DECL: 11/19/2014 
TAGS: ECON ETRD EAID PREF IS GZ PTER
SUBJECT: GAZANS FACE COOKING GAS SHORTAGE, HIGH PRICES 
HEADING INTO WINTER 
 
REF: JERUSALEM 1705 
 
¶1. (SBU) Summary:  Humanitarian and commercial shipments from 
Israel into Gaza in October continued at levels generally 
consistent with previous months.  However, a serious shortage 
of cooking gas (used for heat and sterilization, as well as 
food preparation) in recent weeks has led to the closure of 
bakeries, and impacted the delivery of medical services. 
USAID halted some humanitarian relief into Gaza for three 
weeks due to interference by local authorities, but plans to 
re-start shipments next week.  End summary. 
 
Crossings 
--------- 
 
¶2. (SBU) Kerem Shalom crossing (at the convergence of Israel, 
Egypt, and Gaza) and the conveyor belt at Karni (on Gaza's 
eastern border with Israel) remain the primary crossing 
points for shipments from Israel into Gaza.  According to the 
UN Office of the Coordinator of Humanitarian Affairs (OCHA), 
1,536 truckloads of supplies entered Gaza through Kerem 
Shalom in October, compared with 1,426 truckloads in 
September and 1,817 truckloads in August.  OCHA considers 
just over 20 percent of these shipments to be humanitarian. 
In October, 597 truckloads of supplies passed via the Karni 
conveyor, in comparison to 615 truckloads in September and 
632 in August. 
 
¶3. (SBU) The Nahal Oz fuel terminal (adjacent to Karni) was 
the principal location for fuel transfers from Israel to Gaza 
in October, but fuel shipments are increasingly being routed 
through Kerem Shalom.  Gaza-based fuel contacts report that 
they understand the GOI intends to close Nahal Oz fuel 
station entirely within two months.  According to Oxfam 
International, the new fuel station at Kerem Shalom provides 
capacity to transfer both cooking gas and fuel oil for the 
Gaza power plant, though the facility is reportedly less 
efficient than Nahal Oz because of capacity, expense, and 
distance from the plant and large population centers. 
 
¶4. (SBU) While petrol and diesel pass though the crossings 
for UNRWA's use, and occasionally for private consumption, 
local consumer demand is almost entirely met via smuggled 
fuel from Egypt.  OCHA estimates that 100,000 liters of 
petrol and 100,000 liters of diesel are transferred through 
the tunnels daily. 
 
Cooking Gas Shortages 
--------------------- 
 
¶5. (C) According to NGO sources, only 400 tons of cooking gas 
(LPG) were transferred into Gaza during the first two weeks 
of November, primarily through Kerem Shalom.  The total 
amount transferred for the month of October was 1,600 tons 
(an estimated 23 percent of total demand).  Press reports 
have cited a shortage of cooking gas at hospitals -- where 
fuel is required for sterilizing medical equipment -- as well 
as small businesses, like bakeries.  Prime Minister Salam 
Fayyad told the Consul General on November 18 that he had 
been inundated with calls about the gas shortage in recent 
days.  Demand for LPG goes up in cold weather, as the 
canisters are also used to power small home heating units. 
 
¶6. (C) Muhammad Khozendar, one of the largest fuel 
distributors in Gaza, told EconOff on November 18 that the 
current LPG crisis is a direct result of the GOI's decision 
to shift the transfer of fuel from Nahal Oz to Kerem Shalom. 
Khozendar called the decision "premature," and argued that 
Kerem Shalom does not have the necessary capacity.  He claims 
Gaza requires about 300 tons of LPG per day (or approximately 
10 truckloads at 30 tons/truck) during the winter months. 
According to Khozendar, the Nahal Oz pipeline can fill 10 
truckloads of LPG over an eight-hour period.  In the same 
period, Kerem Shalom's pipeline can only fill 2.5 trucks. 
 
¶7. (C) Khozendar claims that as a result of the Gaza-wide 
reductions of LPG, almost every bakery has closed, with only 
three or four operating full-time, using diesel fuel.  He 
also said the lack of LPG is leading to a crisis among 
chicken farmers, as 40 percent of Gaza's chicken population 
has perished because of the lack of heat.  As a result, the 
price of chicken has increased from NIS 8/kilo to NIS 
13/kilo. 
 
Food 
---- 
 
JERUSALEM 00002094  002 OF 002 
 
 
 
¶8. (SBU) Food supplies make up the bulk of shipments into 
Gaza from Israel, constituting 67 percent of the truckloads 
in October.  According to the UN, approximately 75 percent of 
Gaza's population relies on food aid.  The Food and 
Agricultural Organization (FAO) and World Food Programme 
(WFP) released a report on the Gaza Strip in November, 
stating that the Gazan population is sustained at the most 
basic or minimum humanitarian standard.  According to the 
report, 60 percent of households in Gaza are "food insecure," 
and an additional 16 percent are "vulnerable to food 
insecurity."  While food is available, widespread poverty in 
Gaza is the principal cause behind the crisis -- the main 
problem facing Gazans is affordability of basic items.  The 
NGO Mercy Corps, which distributes food aid in Gaza, has not 
observed a change in the food situation for better or worse. 
 
¶9. (SBU) The GOI is expected to allow 7,000 cows into Gaza 
for the Eid al-Adha holiday at the end of November.  Local 
contacts report that 2,700 cows entered through Kerem Shalom 
as of November 13.  Approximately 1,500 cows entered Gaza for 
the holiday last year. 
 
Electricity 
----------- 
 
¶10. (SBU) According to the Acting Director of the Gaza 
Electricity Distribution Company (GEDCO), Hani Salman, Gaza 
requires 270MW of electricity, yet only approximately 190MW 
is available from the Gaza power plant (55MW), Israel (117MW) 
and Egypt (17MW).  With typical rolling blackouts of four to 
eight hours per day, Salman noted the rise in energy demand 
in the winter risked increased energy cuts that would affect 
health, water, and sanitation.  Contacts at GEDCO note the 
need for imported materials to maintain the network. 
 
Hamas Continues to Test the Limits 
---------------------------------- 
 
¶11. (C) USAID humanitarian relief shipments to local NGOs 
were halted on October 30, after the Hamas-led "Ministry of 
Social Affairs" (MoSA) demanded beneficiary lists for relief 
distributions be "coordinated" through the Ministry. 
According to the UN, after the UN told MoSA that this 
condition would cause major donors to halt all shipments to 
Gaza, MoSA reportedly dropped this demand.  USAID will 
attempt to re-start shipments through its network of local 
NGO partners on November 23. 
RUBINSTEIN