UK confirms ‘discussions’ with British Gas to secure energy source for Gaza

The British Government has confirmed that it has held “discussions” with British Gas about its interests in the eastern Mediterranean Sea with a view to securing a reliable energy source for Gaza.

In 1999 the Palestinian Authority granted British Gas a 25-year licence for the entire marine area off the coast of Gaza, giving the company the right to explore the seabed, develop any gas fields it finds, and build the necessary infrastructure.

Just two years later, in 2001, BG found a huge gas field 18 miles off the Gaza coast, estimated to contain one trillion cubic feet of gas.

The company still holds a 90 percent stake in the field, but the Israeli-Palestinian conflict has prevented the reserve from being developed.

Answering a question in the upper chamber late last week, Foreign and Commonwealth Office minister Lord Ahmad said: “This issue has been discussed with British Gas Group and at international level in the context of how to facilitate a sustainable and long-term solution to the energy crisis in Gaza.”

With US support, the Palestinian National Authority began discussions with Israel in 2012 about developing the field but wrangling over gas prices soon ended hopes.

When the concession was awarded to BG in 1999, it was on the pre-condition that surplus gas would be supplied to Israel, but Israeli leaders have refused to pay market rates, creating a situation of deadlock.