The Qatari government is holding negotiations to sell liquid natural gas (LNG) to Israel, the Egyptian newspaper "Youm7" reported today.
"Youm7" added that according to sources Israel is making preparations to receive Qatari LNG carriers, including the construction of large capacity tanks.
The paper observed that Qatar recently expanded its production of LNG, and it intends to increase its natural gas development projects. Total annual liquid gas production in Qatar, "Youm7" said, recently reached 10 million tons, and it is expected to increase to 12 million tons by 2015.
The Egyptian-Israeli natural gas pipeline has suffered repeated attacks and disruptions this year and gas supply has been suspended for several months. According to "Youm7", Israel loses NIS 6 million daily due to the suspension of Egyptian natural gas supplies.
Back in May, the Arab media reported that Qatar was ready to sell LNG to Israel, and that importing LNG would be a solution for the financial troubles of the Israel Electric Corporation (IEC) (TASE: ELEC.B22). There has been talk of a building a large capacity floating buoy to store the LNG off the coast of the Hadera power station. "Globes" revealed last month that IEC is in talks with Italy's Micoperi Marine Contractors srl over construction of such a terminal.
Published by Globes, Israel business news - www.globes-online.com - on October 16, 2011
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