Paz gas station
Paz to supply gas to PA
Israeli energy company to refine oil for Authority it in it's recently purchased Oil Refineries in Ashdod. Deal estimates to worth about NIA 1.5 billion (roughly USD 30 million)
The Paz energy company began supplying gas to the Palestinian Authority Wednesday, after signing an agreement with the PA to start providing it with petrol in three months.
Sources in the Israeli energy industry and the PA claim that contract went into effect immediately after the Alon Oil Company, the PA's previous supplier, stopped providing the Palestinians with gas on Tuesday.
Paz acquired the Ashdod Oil Refineries from the government this week for a sum of NIS 3.25 billion (roughly USD 764 million).
According to the deal signed between the PA and Paz, the energy company will refine crude oil for the Palestinians, who will purchase the oil directly from the Arab countries. This is set to be the first time since its establishment in 1994 that the PA buys oil independently, and not from Israel.
It is estimated that Paz will sell the petrol to the Palestinians for a lower price than will be charged in Israel.
According to estimates in the energy industry, official purchase of oil in the PA amount to NIS 1.5 billion (roughly USD 30 million) per year.
