British Gas is expected to begin developing gas fields off the Gaza coast. The project, estimated to cost up to $400 million, will bring gas owned by the Palestinian Authority to the Egyptian port of El Arish in Sinai.
The company expects to complete the construction of a pipeline from the gas fields to El Arish by 2009.
The PA is expected to make up to $45 million a year in royalties selling the gas to Egypt.
Ironically, however, it is very likely that Israel, not Egypt will be buying and using the PA gas.
The Israeli government has recently signed a $2.5 billion agreement with Egypt to build a pipeline from El Arish to the Israeli city of Ashkelon, 80 kilometers to the north. As part of the agreement, Israel will be purchasing up to 1.7 million cubic meters of natural gas from Egypt over a 15-year period, once the pipeline becomes operational in 2007.
Israel has refrained from signing an agreement to buy gas from the Palestinian Authority out of fear that the PA’s profits will go to finance terrorists and the purchase of weapons that will be used against the Jewish state.
The PA’s Energy and Natural Resources Authority, however, recently signed an agreement with Egypt last month to explore ways to market its gas through Egyptian ports.
Once the PA’s gas gets pumped to El Arish, one likely way of marketing it is for Egypt to sell it to Israel via the El Arish-Ashkelon pipeline, making Israel an unwitting purchaser of gas from Gaza.
That would make the Israeli consumer one of the major sources of income for the Palestinian Authority in Gaza.
The company expects to complete the construction of a pipeline from the gas fields to El Arish by 2009.
The PA is expected to make up to $45 million a year in royalties selling the gas to Egypt.
Ironically, however, it is very likely that Israel, not Egypt will be buying and using the PA gas.
The Israeli government has recently signed a $2.5 billion agreement with Egypt to build a pipeline from El Arish to the Israeli city of Ashkelon, 80 kilometers to the north. As part of the agreement, Israel will be purchasing up to 1.7 million cubic meters of natural gas from Egypt over a 15-year period, once the pipeline becomes operational in 2007.
Israel has refrained from signing an agreement to buy gas from the Palestinian Authority out of fear that the PA’s profits will go to finance terrorists and the purchase of weapons that will be used against the Jewish state.
The PA’s Energy and Natural Resources Authority, however, recently signed an agreement with Egypt last month to explore ways to market its gas through Egyptian ports.
Once the PA’s gas gets pumped to El Arish, one likely way of marketing it is for Egypt to sell it to Israel via the El Arish-Ashkelon pipeline, making Israel an unwitting purchaser of gas from Gaza.
That would make the Israeli consumer one of the major sources of income for the Palestinian Authority in Gaza.