The Paz Oil Company Ltd. has extended the Palestinian Authority's gas supply contract by an additional two years.
The contract is worth an estimated NIS 1.8 billion annually, or 11.6% of Paz' total sales, and constitutes 50% of the total gas demand within the West Bank and Gaza Strip.
"This is an essential client for us," said Paz CEO Yona Fogel. "I see the renewal of the contract an achievement, and will mark seven years to the relationship between the two sides.
"We were never the sole supplier, and as part of our new contract, we've reduced the credit terms of the client," Fogel added.
Oil Refineries Ltd. (BAZAN) has announced that it won the other half of the contract, adding that it will directly supply fuel products to the Palestinian Authority for a period of two years, beginning in October 2012.