A drilling consortium developing Israeli offshore natural-gas fields is closing in on a politically sensitive deal to supply gas to Jordan , according to people familiar with the situation -- moving the Jewish state a step closer to exporting energy for the first time in its history.

 Israel 's Delek Group Ltd. and Texas-based Noble Energy Inc., which are developing fields offshore Israel , are discussing a gas supply deal with Arab Potash Co., a fertilizer company with a plant in Jordan , according to these people. The deal would involve extending a gas pipeline from an Israeli chemical plant to APC, located across the Dead Sea in Jordan .

An Israeli official familiar with the talks said a deal could be just weeks away. Another person familiar with the talks, Oded Eran, Israel 's former ambassador to Jordan , said an agreement in principle has already been reached, but both sides are still haggling over pricing and other technicalities.

"It's very close," Mr. Eran said.

While relatively small in terms of commercial value, the deal could open a major economic link between the neighboring countries.

For Israel it would carry outsize symbolic significance. Since its founding decades ago, Israel has struggled with a lack of energy reserves in a region full of energy-rich and hostile neighbors.

A senior Egyptian official familiar with the country's gas agreement said Jordan has informed them it is close to signing the deal, but final details are yet to be agreed on.

A representative for APC couldn't be reached for comment. APC is 28% owned by Potash Corp. of Saskatchewan , and a spokesman there referred questions back to APC. A spokesperson for Delek declined to comment, and a spokesperson for Noble Energy didn't respond to requests for comment.

Energy companies in recent years have announced two major discoveries off the Israeli Mediterranean coast, estimated to hold at least 650 billion cubic meters of gas. That is enough, in theory, to satisfy Israeli energy demands for decades, while leaving a surplus to export.
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