British Gas to sign $4 billion deal with Israel
Ynet
May 24, 2007
London Times reports British Gas close to signing deal to supply Israel with gas from off-shore field near Gaza. Hamas says will block deal
The BG group, former owner of British Gas is about to sign a four billion dollar deal to supply Israel with gas found in an off-shore field near Gaza, the London Times reported Thursday.
Representatives from British Gas are scheduled to meet an Israeli team
chosen by the Cabinet, to sign the 15-year contract. The Israeli Foreign Ministry,
according to the Times, wants to close the deal "as soon as possible"
regardless of the escalating violence in Gaza and the West Bank.
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Full story
The proposed deal will enable British Gas to develop what is the Palestinian
Authority's only natural resource – an off-shore gas field. The field can
supposedly supply ten percent of Israel's over-all gas requirements, giving
the Palestinians one billion dollars in royalties.
"We are making progress. There are commercial issues to be completed and we
also require bilateral agreement between the two governments to get this project
across the line," Nigel Shaw, BG Group vice-president in the Middle East
told the London Times Thursday.
"This is a chance for greater economic prosperity in Palestine and that is
only good for peace,” he added.
British Gas first discovered the gas field in 2000. The field is said to
contain a trillion cubic feet of gas, equaling 150 oil barrels.
According to the Times, about three weeks ago, the Israeli Cabinet approved
Prime Minister Ehud Olmert's proposal to buy gas from the Palestinian
Authority, recognizing the need for new energy sources for Israel’s rapidly
growing economy.
Hamas officials told the Times Thursday that they will challenge the deal,
and do what even necessary to block it.