A rare collaboration between Minister of Foreign Affairs Tzipi Livni, Minister of Defense Amir Peretz and Minister of Strategic Affairs Avigdor Lieberman has led to another postponement of the government’s decision whether to buy natural gas from BG Group plc (NYSE: BRG; LSE: BG) (British Gas).
At yesterday’s cabinet meeting, the Prime Minister’s Office and the Ministries of Finance and National Infrastructures called for a vote on the subject, even though the ministers present at the meeting did not discuss the subject, and only intended to hold an immediate vote. Lieberman halted the cabinet discussion and raised possible consequences of British Gas transferring to the Palestinian Authority royalties from Israel Electric Corporation (IEC). He noted that the cabinet had already discussed that this money might be used to finance anti-Israeli terrorism.
Peretz said that the defense establishment had not yet reviewed the matter, and the security ramifications should be taken into account.
Livni called for a thorough review of the diplomatic and security consequences of the purchase of natural gas owned by the Palestinian Authority. She also called for a discussion on the reverse scenario - the possible consequences of not buying gas from a British company supported by the British government.
Even though the government has discussed the subject for years, no comprehensive and adequate study has been held to date on the diplomatic and security ramifications of natural gas from reservoirs located in the territorial waters of the Palestinian Authority. In December 2004, the government decided not to buy, market, or sell natural gas, or instruct any other entity to do so. At yesterday’s cabinet meeting, the Prime Minister’s Office and the Ministries of Finance and National Infrastructures sought to cancel this decision. Had that happened, IEC could buy natural gas from Yam Thetis, Egypt, and the Palestinian Authority.
Published by Globes [online], Israel business news - www.globes.co.il - on March 26, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007