This is calculated based on the cost of more expensive higher-pollutant fuels, such as crude oil, diesel and coal, and more expensive solutions for the Israeli gas market, such as a pipeline from Turkey, that will now be needed.

Even more grave, Israel is now left with just one central gas supplier, EMG, which depends on the Egyptian pipeline.

BG vice president Nigel Shaw Tuesday informed the Prime Minister's Office that the British company had decided not to return to the Israeli market but rather to sell the gas found off the Gaza coast to Egypt and from there to international markets. Accelerated efforts were made yesterday by the National Infrastructure Ministry to change BG's mind, but BG responded to the ministry director general that it was sticking by its decision.

In an exclusive interview with TheMarker, Shaw said that the prices the state presented to the company did not come close to making it worthwhile to implement the project.

"In Israel, they didn't succeed in understanding the world gas market and until they do, no international company is going to come to Israel, and for sure we won't return to work in Israel," he said.

"The threats and hints about making it more difficult for the company to complete its project [with Egypt] are inconceivable," Shaw said, noting that this issue was being passed on for politicians to handle. "We are committed to Egypt, and they are our full partners on the project," he said.

When British Gas recently decided to market its gas to Egypt and not to Israel, attempts were made to bring the company back. However the failure of these talks, and this week's final announcement of BG's departure, brought an exchange of harsh accusations yesterday in the gas industry in general and in government ministries in particular about who was responsible for the debacle. There were also calls for those who conducted the negotiations - budgets director Kobi Haber, accountant general Yaron Zelekha and Infrastructure Ministry director general Eli Ronen - to resign immediately. Another accusing finger was pointed at former Prime Minister's Office director general Ilan Cohen, who headed the talks with BG.