British gas company about to sign $4 billion deal to supply Palestinian gas to Israel
Ma'an
May 23, 2007
Bethlehem - Ma'an - British newspaper The Sunday Times has reported that
British Gas (now BG Group) is about to close a deal worth $4 billion, to supply
Palestinian gas to Israel.
The gas was discovered off the Gaza coastline and representatives from BG
Group are to travel to Israel next week to agree the terms of a 15-year contract.
The Sunday Times reported that the gas is the Palestinian Authority's only
natural resource. The gas is expected to meet 10% of Israel's annual energy
requirement. Palestinians are to receive a payment of $1 billion.
The BG Group discovered the Gaza Marine field in 2000; it contains one
trillion cubic feet of gas. Israel's Supreme Court challenged the Palestinians' legal
right to the discovery.
BG Group was engaged in a deal with Egypt before British Prime Minister Tony
Blair intervened and asked the company to choose instead to supply to
Israel.
When the discovery was made, Ariel Sharon refused to buy gas from the
Palestinians. But three weeks ago, the Israeli cabinet, recognising Israel's
growing need for new energy sources, approved a proposal from Prime Minister
Ehud Olmert to buy gas from the Palestinian Authority.
The gas is to be transported from the Gaza marine field to the Israeli
seaport of Ashkelon via an undersea pipeline. Doubt still surrounds the deal as
questions remain about how revenues will be issued to the Palestinian Authority.
The Israeli defence ministry want Palestinians to be paid in goods and
services and demand that no money is paid to the government.