Governments trying to bring British (Gaza) Gas back to Israel

Israel is attempting to reach an agreement with Britain that will allow British Gas (BG) to supply natural gas to the Israeli market.

This week senior executives of the firm will meet here with government officials from the Prime Minister's Office, the treasury and the Infrastructure Ministry. The meetings will be held in light of the exchange of letters between Acting Prime Minster Ehud Olmert and Britain's Chancellor of the Exchequer Gordon Brown.

Last week Brown answered a letter from Olmert, saying among other things that the British government would assist in returning British Gas to the Israeli energy sector, Haaretz has learned. This is the first time that the government has taken an official stance on the matter, and sources believe that the message was also passed on to British Gas.

Recently Olmert wrote Brown saying that Israel would be pleased to purchase natural gas from BG, and that such a step would strengthen ties between the two nations and the Palestinian Authority. The gas fields are located in PA territory.

Haaretz