British Gas Company, which participate in natural gas tender, issued by the Israel Electric Corp., has proposed a barter deal
British Gas Company, which participate in natural gas tender, issued by the Israel Electric Corp., has proposed a barter deal under which Israeli company is supposed to supply electricity to the Palestinian Authority in exchange for the natural gas to be extracted off the Gaza coast.
According to the deal, the IEC would still pay BG for its share of gas to be supplied.
The other tender competitor is EMG, an Israeli-Egyptian energy company, which is still negotiating terms with IEC.
Israeli National Infrastructure Minister Yosef Paritzky noted that the Palestinian Authority not only owes the IEC millions of shekels for previously supplied power, but also owes money to several other Israeli bodies. The swap deal could be used to diminish those debts, which would strengthen the IEC's financial status, the minister said.
He added that British Gas's suggestion would be brought to Prime Minister Ariel Sharon's attention within days.
