The company is looking at the option of purchasing additional quantities of natural gas from suppliers besides BG Group.
Israel Electric Corporation (IEC) (TASE: ELEC.B22) is looking at the option of purchasing additional quantities of natural gas from suppliers besides BG Group (NYSE: BRG; LSE: BG). Sources inform ''Globes'' that the company recently approached BG Group, Delek Group Ltd. (TASE: DLEKG) subsidiary Yam Tethys Ltd. and Egypt's East Mediterranean Gas Company (EMG) with an offer to begin talks on the purchase of a further quantity of gas from 2012.
As reported by "Globes", the Ministry of Finance and the Ministry of National Infrastructure recently IEC the green light to begin talks with BG Group on the purchase of natural gas from its offshore reserve in Gaza, but the quantity of gas it can buy was limited to 800 million cubic meters a year, half the reserve's total capacity.
Government source said in response that they had not yet been advised of the IEC decision.
An IEC spokesperson said in response, "We have begun talks on the purchase of the additional supply of gas that we will need from 2012 onward. We hope to expedite this process as quickly as possible and will announce our decision in the near future."
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2008
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