The Prime Minister's Office today denied reports that Prime Minister Ariel Sharon had changed his position regarding possible purchases of natural gas by Israel Electric Corporation (IEC) from British Gas, from the latter's fields offshore from Gaza.
Two years ago, Sharon decided not to buy gas from British Gas, which jointly owns fields offshore from Gaza with the Palestinian Authority and Palestinian businessmen. Sharon was worried that proceeds from Israel's purchases might be used to finance terrorist activity against it.
Last night, Channel 2 news reported that Sharon had changed his mind, and decided to allow purchases of gas from British Gas. Former Minister of National Infrastructures Eliezer Sandberg suggested to Sharon that he permit contracts with British Gas, in order to create a third natural gas supplier for IEC, in addition to Egypt's Eastern Mediterranean Gas, and Israel's Yam Thetis.
The Prime Minister's Bureau said that Sharon met new Minister of National Infrastructures Benjamin Ben-Eliezer a few days ago to discuss the ministry's work plan. The Prime Minister's Bureau said that Ben-Eliezer raised the subject of British Gas, but that Sharon did not change his mind.
"He did not say that he supported it or that he opposed it. He has not yet formulated his position on former minister Sandberg's request," stated the Prime Minister's Bureau.
At the meeting with Sharon, Ben-Eliezer proposed that Israel not pay British Gas and the Palestinian Authority in cash for natural gas, but pay through barter deals. He proposed that Israel provide electricity and water utilities in exchange, "since we will have to provide these to the Palestinians in any case," he said.
Sanberg said today that he welcomed any change in Sharon's position in favor of a deal with British Gas. Sandberg believes that an agreement was possible whereby Israel would provide the Palestinians with electricity and water utilities in exchange natural gas.
IEC said today that the company had not received any authorization from the Prime Minister's Office to open negotiations with British Gas.
Published by Globes [online], Israel business news - www.globes.co.il - on February 13, 2005