Al Shawwa: New Developments in Fields of Energy and Natural Resources
www.ipc.gov.ps/ipc_new/english/details.asp?name=4908

GAZA, Palestine, May 25, 2005 (IPC) -[Official PA website] - The Head of
the Palestinian Energy and Natural (PENRA) Resources Authority, Azzam Al
Shawwa, said that the sectors of energy and natural resources have been
undergoing serious changes in the interest of the Palestinian people.

Al Shawwa, who was speaking in a press conference held at IPC headquarters
in Gaza, told reporters that the Palestinian Authority reached a deal with
the Israeli side to keep the electricity grids in the illegal settlements
intact, following the purported Israeli withdrawal.

He pointed out that these grids would be later appropriated to the needs of
the Palestinian population centers, and that mechanisms of understanding
were reached with regards to the Palestinian electricity grid's connection
with the Israeli network.

The head of PENRA asserted that the improvements in the electricity feed of
the southern Gaza Strip cities of Khan Younis and Rafah, who are suffering
from electricity shortages, was being hindered by the Israeli forces and
settlers, especially near the illegal settlement 'Kfar Darom', as they
continue to prevent the Authority's technical teams from installing a new
power line in the area to connect both cities.

"We need only two weeks to pump in 25 Megawatts of electricity to Khan
Younis and Rafah, but Israelis have been preventing this work for over a
month now," Al Shawwa said.

He also announced that Gaza Electricity Company, which is the executive arm
of PENRA, is currently studying a project to install prepaid electricity
meters, which would revolutionize the collection of electricity fees, as
well as solve the problems of collectors in reaching remote or dangerous
areas, such as the villages trapped behind the Israeli Apartheid Wall in the
West Bank.

"There's almost NIS 700 million [about $160.5 million] of uncollected
electricity fees in civilians' pockets. Those unable to pay now will be
urged to pay after the wheel of economic development is turned, while those
able but don't want to will have their electricity cut . we are approaching
donor countries to fund the prepaid meter project, as well as forming
professional crews to study the feasibility of the project and its
requirements."

With regards to the natural gas fields discovered off the shores of Gaza
Strip, Azzam Al Shawwa mentioned that there are two gas fields discovered in
Gaza, "the largest is 35 kilometers off the coast of Gaza, while the other
is shared with the Israeli side near the northern Gaza coast."

"We have made a contract with the British Gas company to carry out
exploration and mining operations in the shared field, and obtained
preliminary approval from the Israeli authorities to bring in a natural gas
rig from Australia to start operations next September," Al Shawwa declared.

The agreement with British Gas, said Al Shawwa, would also include
constructing pipes and a power station to pump the mined gas from the sea
field to Gaza Strip, and then to the electricity generating plant. He said
depending on the mined gas to power the electricity generating plant would
save 55 percent of the costs of fuel currently being used to power the
plant.

However, he warned that the Palestinian negotiating team should not
underestimate the definition of Gaza Strip's borders during the coordination
of the Israeli withdrawal, referring to the northern gas field, and noted
that any centimeter conceded by the Palestinians would mean a grave loss in
the Palestinian share in the natural gas of that field.

Concluding the conference, Al Shawwa expressed optimism with regards to the
gas mining contract with the British company, and hoped that the excess gas
would be marketed and sold for the benefit of the Palestinian economy and
the financial status of the Palestinian Authority and its institutions.