According to reports later confirmed by Mujahed Salameh, the Palestinian fuel chief, a total of one million liters (265,000 gallons) of diesel is being shipped to Gaza, which will power the plant for three days.
The fuel supplies, the first in a week, were being delivered through the Nahal Oz oil depot which was attacked by Palestinian militants April 9 killing two Israeli workers.
According to earlier press reports, Egyptian mediators have brokered a preliminary agreement with radical Palestinian movement Hamas on conditions for a ceasefire with Israel in the Gaza Strip.
In return to halting rocket barrages at bordering Israeli towns, Hamas wants Israel and Egypt to open their borders with Gaza for goods and people.
Israel and Egypt restricted movement of people and supplies in and out of Gaza after Hamas won the 2006 Palestinian general elections, and further tightened the blockade after the radical group seized Gaza from President Abbas' Fatah in June, leaving the Palestinian leader in control of the West Bank.
Officially Israel has denied holding any talks, direct or indirect, with Hamas.