Palestinians are working on a project to produce natural gas in Gaza and sell it to Israel, according to a report by the People’s Daily Online (China, english.peopledaily.com.cn).

The report says a deal is being negotiated between Palestinians, Israelis, and British Gas (BG, www.bg-group.com), whereby BG and a Palestinian investment fund would employ Palestinian Consolidate Contractors Company (CCC) to develop the natural gas project to generate financial return for the Palestinian Authority and other partners in the region.

CCC is reportedly holding negotiations with Israel’s electric company, via BG, to provide it with natural gas from the project. Israeli newspaper Ha”aretz (www.haaretz.com) reported last week that Israel was ready to sign a deal with BG to purchase part of the natural gas produced in Gaza.