What do you suppose this means?
UK energy firm BG Group has confirmed it is in talks to agree a contract to supply Palestinian gas to Israel.
BBC Business
This is a change from previous policies.
In 2003, then prime minister Ariel Sharon cancelled similar negotiations out of fear that natural gas revenues would end up in the hands of terrorists.
YNET
Interestingly, YNET reported earlier when the gov't approved of the negotiations, the revenues to the PA could amount to "10's of millions of dollars", while the BBC reports the revenues could reach $1bn.
Israel currently gets much of its energy from coal, and buys principally from Russia. Egypt supplies much of her gas. She is desiring to convert coal plants to natural gas. This will disrupt some longstanding Israeli/Russian and Israeli/Egyptian business relationships.
The offshore Gaza Marine gas fields could meet as much as 10% of Israel's energy needs.
The gas is expected to flow in 2011 to a facility at Ashkelon.
Nigel Shaw, BG Group vice-president in the Middle East inthe the London Times:
"We are making progress. There are commercial issues to be completed and we also require bilateral agreement between the two governments to get this project across the line," Nigel Shaw, BG Group vice-president in the Middle East told the London Times Thursday.
"This is a chance for greater economic prosperity in Palestine and that is only good for peace," he added.
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According to the Times, about three weeks ago, the Israeli Cabinet approved Prime Minister Ehud Olmert's proposal to buy gas from the Palestinian Authority, recognizing the need for new energy sources for Israel’s rapidly growing economy.
Hamas officials told the Times Thursday that they will challenge the deal, and do what even necessary to block it.
YNET
Interestingly, this week, the 1.5 million member UK civil servant's union is considering a boycott of Israeli goods and divestment of Israeli securities from their pension portfolio.
The largest British labor union, the 1.6 million-member UNISON, has threatened to launch a drive to boycott Israel, according to press reports yesterday
NY Sun
Will the UNISON move lead to a divestment of its holdings in British Gas?
Is this a signal that things are thawing over there? Will economic interdependence be a calming influence? Is this just a matter of petro-politics pragmatism trumping national security concerns? Will the flow of revenues to the PA help or hurt the cause of peace?
The gas negotiations have been on and off since the 2000 discovery of the field.
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