UK firm seeking Gaza gas deal

In-depth Report:

The UK firm BG Group is poised to agree to the terms of a USD 4b deal to supply Palestinian gas to Israel from a discovery off the Gaza coastline.

Representatives from the British energy company are scheduled next week to meet a team of negotiators chosen by the Israeli cabinet to thrash out a 15-year contract, according to a report in the Times on Wednesday.

If a deal is reached it would enable BG to develop an offshore field, controlled by the Palestinian Authority, which it discovered in 2000.

The project has been beset by problems since BG discovered the field, which it says contains one trillion cubic feet of gas, with Israel previously vowing never to buy gas from Palestinians.

However, BG is now hoping to sign a $4bn deal for a 15-year gas supply contract with the Israeli government. The Palestinian Authority would receive $1bn in royalties.

Under the proposals, BG would transport gas from the Gaza Marine field through an undersea pipeline to the Israeli port of Ashkelon.

Although Israeli insiders are confident of a deal, significant questions remain, not least how payments to the Palestinian Authority will be made. Israeli defense authorities want the Palestinians to be paid in goods and services and insist that no money go to a Palestinian government led by Hamas.


Articles by: Global Research

Disclaimer: The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article. The Center of Research on Globalization grants permission to cross-post original Global Research articles on community internet sites as long as the text & title are not modified. The source and the author's copyright must be displayed. For publication of Global Research articles in print or other forms including commercial internet sites, contact: [email protected]

www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.

For media inquiries: [email protected]