BG Group CEO Frank Chapman: The barriers relate to realism on the part of the Israeli's regarding the value of gas today.
"Reuters" reports that BG Group plc (LSE: BG) will renew negotiations with the Israeli government for the sale of natural gas from the company's reserves offshore from Gaza. Last month, the Ministries of Finance and National Infrastructures asked the company to resume talks, which were suspended in early 2008. The subject was raised during last week's state visit by UK Prime Minister Gordon Brown.
BG Group CEO Frank Chapman said, "It's just another stage in the process which I expect to be quite a long and drawn out process. The barriers relate to realism on the part of the Israeli's regarding the value of gas today." He made the comments during a conference call. He added that another problem was the lack of agreement between Israel and the Palestinian Authority on a stable framework to export the gas.
"Globes" was the first to report that the Israeli government planned to resume negotiations with BG Group because of natural gas shortages and the country's dependence on Egypt's East Mediterranean Gas Company (EMG).
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2008
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