A $1.2 Billion contract for gas from the Leviathan field between Israel and the PA has been canceled. PHOTO: Offshore Technology,

A contract between the PPGC (Palestine Power Generation) Company and Israel’s Delek Drilling’s was canceled due to an Antitrust Commissioner decision, Israel’s 0404 news website reported on Wednesday.

In January of last year, the owners of Israel’s Leviathan gas field reported an agreement with the Palestinian Authority to export gas, worth $1.2 Billion. Under this agreement, the PPGC, which is expected to build a power plant in Jenin, was slated to acquire 4.75 BCM of natural gas for 20 years.

The owners explained that the cancellation of the contract resulted from the failure to obtain the approval of the Antitrust Authority, the delay in approving the start of the development of the project, and the inability to obtain additional regulatory approvals.

Delek’s owner Yitzchak Teshuva said at the time of the initial agreement that, “strong and stable economic relations between the two sides will bring the entire region closer to peace and stability – allowing everyone to enjoy economic prosperity and growth. Peace is a joint effort, joint economic cooperation, and mutual respect and trust. Economic cooperation, like the agreement signed today, will help bring together the countries in the region and contribute to building a basis for peace. It would be possible to create many new jobs, cooperation in business and entrepreneurship – they will bring together the common will of all parties to reach an understanding of peace.”