At a meeting held today, at the Prime Minister's Office (PMO), it was agreed that Government representatives, along with representatives of the companies due to purchase natural gas, will begin intensive contacts with British Gas representatives in order to facilitate the company's entry into the Israeli market as a gas supplier.  The contacts are due to last approximately one month.

A senior British Gas delegation was invited by PMO Director-General Ilan Cohen to the meeting, which was designed to promote British Gas's integration as a third supplier in the Israeli gas market.  National Infrastructures Ministry Director-General Eli Ronen, Finance Ministry Budget Director Kobi Haber and other senior officials also attended the meeting.

PMO Dir.-Gen. Cohen said that Acting Prime Minister Ehud Olmert had instructed him and Finance Ministry Budget Director Haber to make every effort in order to facilitate British Gas's entry into Israel, which would encourage competition in the energy market.

The British Gas representatives said that they believe that a market for future growth in the natural gas field is developing in Israel and added they are in direct contact with Israeli companies that are converting their energy consumption to natural gas.

The British Gas representatives also said that they are considering the possibility of exporting gas from Gaza via pipeline to Egypt, where it will be shipped to the US.  They added that as a business concern, they are considering the most economically worthwhile alternative and are thus comparing the alternatives of supplying gas either to the Israeli market or to the American market as mentioned above.

The British Gas representatives said that should the sides reach an understanding, their company could begin to supply gas to Israeli consumers in 2009.  They noted that their company's entry into the Israeli market depends on the appropriate economic conditions regarding the quantities of gas to be supplied and their price.

It was decided that the representatives of the larger companies that wish to purchase gas will hold commercial contacts with British Gas, with National Infrastructures Ministry Director-General Ronen serving as the Government's contact on the issue.