The development is seen enabling negotiations on gas from Gaza to progress.
Israel is making another attempt to rescue the negotiations on buying natural gas from Gaza. Sources inform "Globes" that Israel Electric corporation (IEC) has recently approached the Ministry of Finance and requested approval for raising the amount of gas to be bought from BG Group beyond the amount (0.8 billion cubic meters) approved by the government.
The Ministry of Finance is said to view the request favorably. IEC has already received approval in principle for raising the amount of gas, and is due to present the new outline proposal in a meeting in London with BG Group in the next few weeks.
The decision in principle to allow IEC to raise the amount of gas to be purchased is likely to enable the negotiations to make progress, after BG withdrew from understandings with eth government whereby it would sell half the output of the gas field to private power producers.
Published by Globes [online], Israel business news - www.globes.co.il - on February 2, 2009
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