Official: Gas deal requires govt approval
Published Thursday 23/01/2014 (updated) 23/01/2014 22:11
Leviathan gas has a $1.2 billion deal with the PPGC.
RAMALLAH (Ma'an) -- The head of the Palestinian energy authority said Wednesday that an agreement to build a power plant in Jenin requires the approval of the government.
Omar Kittaneh said that contrary to what has been reported on social media the proposed agreement has “the cheapest prices in the Middle East”.
“Despite not being part of the agreement, the government sets the condition of having a long-term agreement to ensure low prices.”
Kittaneh added that “Israeli law forbids signing any agreement for a period longer than 15 years to allow for competition.”
He said that if the government does not approve the agreement within 9 months, it will be void.
Earlier this month the Palestinian Authority said the Palestine Power Generation Company signed a 20-year-deal with Israeli and American natural gas companies.
Kittaneh said that a power plant would be built in the West Bank on land designated by the Palestinian cabinet, and that bids for the project were now open.
Partners in Israel's Leviathan natural gas field signed a $1.2 billion deal with PPGC, Reuters reported.
According to the Reuters report, PPGC plans to build a $300 million power plant in Jenin that will be operated by the gas from the deal.
The Leviathan natural gas field is located in the Mediterranean Sea west of Haifa.