Israel offers to sell natural gas to India

The two governments are expected to set up a feasibility study to examine the proposal

 
The Times of India reported last week that Finance Minister Yuval Steinitz had offered to sell Israeli natural gas to India. According to the report, Steinitz visited India last week and made the offer to Finance Minister Pranab Mukherjee and National Security Advisor Shivshankar Menon.
 
Finance Minister Steinitz confirmed Monday that Israel and India are engaged in talks about the potential gas deal, and said that he “would be happy to receive delegations from India” about the issue.
 
The two governments are expected to set up a feasibility study to examine the proposal and when Indian Foreign Minister SM Krishna visits Israel in January, talks are expected to progress.
 
News of the potential gas deal follows recent statements by Israeli political leaders about the importance of diversifying the Israeli economy and increasing exports to Asia.
 
Recent discoveries of gas in the Leviathan and Tamar fields have the potential to turn Israel into an important player in the natural gas industry. Estimates show that Leviathan has some 16 trillion cubic feet of gas, worth over $160 billion. Tamar has an estimated eight trillion cubic feet of gas, and production will begin in 2013.