BG Group is to consider again an option to sell its Gaza natural gas through Egypt, after a collapse of talks to commercialize it in Israel, a person familiar with the situation said Tuesday.
Last month, BG said it had reached an impasse in talks with Israel to pipe gas from its Gaza fields to Israel as the two parties disagreed on a range of issues including price.
As a result, BG said Tuesday it intends to close its office in Israel Jan. 31, though it will keep its representation in Ramallah, West Bank.
"BG also intends to relinquish its (35%) equity in, and operatorship of, the Med Yavne license, offshore Israel," the company said.
Over a year ago, BG held talks with the Palestinians and Egypt to export future output to the U.S. and Europe after being processed as liquefied natural gas in Egypt - an option that could now be revived. A BG spokesman said the company is considering its options.
Copyright (c) 2008 Dow Jones & Company, Inc.
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