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January 8, 2014 By:
Palestinian, Israeli Firms Sign Deal
JERUSALEM — A Palestinian electric company was the first to sign an agreement to buy gas from Israel’s Leviathan natural gas field.
The Palestine Power Generation Company signed a 20-year deal to purchase $1.2 billion worth of gas from the Leviathan group, according to reports. Palestine Power is planning to build a $300 million power plant in Jenin and use the Leviathan gas to operate it, Reuters reported.
The Leviathan field, located about 80 miles west of Haifa in the Mediterranean Sea, has not yet begun gas production; it is scheduled to start in 2017.
In June, Israel’s Cabinet approved the export of about 40 percent of the country’s recently discovered reserves of natural gas while keeping a 25-year supply for national consumption. Several large natural gas fields have been discovered in the Mediterranean Sea off the coast of Israel in recent years, with approximately 950 billion cubic meters of gas projected to be in the fields.