The natural gas discovery at the Tamar prospect offshore from Haifa might result in an end to negotiations by the Israeli government to buy gas from Gaza. Consolidated Contractors Company (CCC) VP Palestine Walid Salman said in an interview with Jordanian newspaper "Alad" that the company believes that the gas discovery off Haifa will reduce Israel's dependence on importing gas from the gas field offshore from Gaza.
Israeli shipping news portalPort2Port reported on the story.
BG Group plc (NYSE: BRG: LSE: BG) owns 90% of the Marin natural gas concession offshore from Gaza, with the Palestinian Authority government Palestine Investment Fund and Consolidated Contractors Company (CCC), owned by Lebanon’s Khoury family, owning the rest. CCC has an option to increase its stake to 30%.
Salman said that the discovery reduces the likelihood that Gaza gas would be marketed in Israel, and that natural gas might instead be sold on international markets. CCC executives rarely speak about the Gaza gas field.
Salman said that CCC wants to link up the Palestinian natural gas pipeline in Gaza with the Egyptian pipeline at El Arish in Sinai, which would enable the marketing of Gazan gas through Egypt and its conversion into liquid natural gas at BG Group facilities.
Israel recently renewed negotiations with BG Group, after the company withdrew its understandings with the government that it would sell half the gas from the Gaza field to private customers. BG Group told Israel Electric Corporation (IEC) (TASE: ELEC.B22) that it wanted a government commitment to buy all the gas from the field.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2009
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