PA, Egypt do gas deal without Israel

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WASHINGTON, D.C. -- Israel is not expected to participate in the construction of a proposed pipeline transporting Palestinian liquid gas from a gas field on the Gaza coast to Al Arish in Egypt.

Following recent significant gas discoveries in areas of the Palestinian Authority by British Gas (BG), the Palestinian Authority (PA) and Egypt signed a government protocol in early July to arrange the sales of Palestinian gas to Egypt with exports to global markets to be made in the form of liquid natural gas.

Despite the good news for the Palestinians, some industry experts are skeptical of Israel's silence toward the news. Although it is a partner to the PA in a small gas field to the north of the Gaza Strip, Israel has in the past blocked Palestinian gas export and production agreements.

While the proposed pipeline project would export Palestinian liquid gas through Egypt, Israel has chosen to buy gas from Egypt rather than from the PA.

"Israel has shown that it is not interested in gas, so the preferred channel for use right now is the Egyptian-Palestinian channel," BG Israel country manager Eric Ludtke told reporters.

http://www.metimes.com/articles/normal.php?StoryID=20050722-023712-1135r