Egypt unilaterally cancels gas deal with Israel
Posted: Sun Apr 22, 2012 8:27 pm
Totally agree - it should never have happened!
"Egypt has unilaterally terminated its natural gas export contract with Israel, a shareholder in the export operating company, East Mediterranean Gas Company (EMG), said Sunday night.
Ampal-American Israel Corporation, which owns a 12.5 per cent stake in EMG, announced that it had been notified by EMG that Egypt was ending the Gas Supply and Purchase Agreement between the two parties.
“Egyptian General Petroleum Corporation [EGPC] and the [state-run] Egyptian Natural Gas Holding Company [EGAS] notified EMG that they were terminating the Gas Supply and Purchase Agreement between the parties,” the Ampal statement read.
Egyptian authorities have yet to make an official announcement on the development.
The company added that "EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal," noting that EMG, Ampal and EMG's other shareholders were "considering their options and legal remedies as well as approaching the various governments."
The 20-year natural gas deal signed between Israel and Egypt in 2005 has been a pillar of Egyptian-Israeli economic cooperation following the historic 1979 peace treaty between the two countries.
Israel, which depends on Egyptian natural gas for 40 per cent of its energy needs, has been adversely impacted by the repeated interruption of gas supplies resulting from frequent attacks on the north Sinai pipeline since last year's revolution.
The pipeline transporting Egyptian gas to Israel and Jordan has been rocked by 14 explosions – by unknown assailants – since the January 25 2011 uprising that led to the ouster of longstanding president Hosni Mubarak.
Previous explosions have resulted in weeks-long supply stoppages of the pipeline run by Gasco, an EGAS subsidiary.
Supply has been halted since a previous attack on 5 February 2012. The last attack took place on 9 April.
No group has claimed responsibility for the attacks on the pipeline, which transverses an increasingly restive Sinai Peninsula.
Over the course of the last decade, Egypt has become a key natural gas producer, developing gas fields in the Mediterranean Sea. It began exporting liquid natural gas (LNG) in early 2005.
Egypt's Mubarak-era gas deal with Israel has proven highly unpopular with the Egyptian public.
Some critics accused the ousted Egyptian strongman of selling the gas to Israel at below international prices, thus depriving the Egyptian economy of badly needed funds. Others critics have decried what they describe as government complicity in financially supporting Israel's war on the Palestinians.
Egyptian authorities announced plans in November to step up pipeline security with the installation of alarm systems and security patrols carried out by local Bedouin tribesmen."
From Ahram Online - http://english.ahram.org.eg/NewsContent ... with-.aspx
"Egypt has unilaterally terminated its natural gas export contract with Israel, a shareholder in the export operating company, East Mediterranean Gas Company (EMG), said Sunday night.
Ampal-American Israel Corporation, which owns a 12.5 per cent stake in EMG, announced that it had been notified by EMG that Egypt was ending the Gas Supply and Purchase Agreement between the two parties.
“Egyptian General Petroleum Corporation [EGPC] and the [state-run] Egyptian Natural Gas Holding Company [EGAS] notified EMG that they were terminating the Gas Supply and Purchase Agreement between the parties,” the Ampal statement read.
Egyptian authorities have yet to make an official announcement on the development.
The company added that "EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal," noting that EMG, Ampal and EMG's other shareholders were "considering their options and legal remedies as well as approaching the various governments."
The 20-year natural gas deal signed between Israel and Egypt in 2005 has been a pillar of Egyptian-Israeli economic cooperation following the historic 1979 peace treaty between the two countries.
Israel, which depends on Egyptian natural gas for 40 per cent of its energy needs, has been adversely impacted by the repeated interruption of gas supplies resulting from frequent attacks on the north Sinai pipeline since last year's revolution.
The pipeline transporting Egyptian gas to Israel and Jordan has been rocked by 14 explosions – by unknown assailants – since the January 25 2011 uprising that led to the ouster of longstanding president Hosni Mubarak.
Previous explosions have resulted in weeks-long supply stoppages of the pipeline run by Gasco, an EGAS subsidiary.
Supply has been halted since a previous attack on 5 February 2012. The last attack took place on 9 April.
No group has claimed responsibility for the attacks on the pipeline, which transverses an increasingly restive Sinai Peninsula.
Over the course of the last decade, Egypt has become a key natural gas producer, developing gas fields in the Mediterranean Sea. It began exporting liquid natural gas (LNG) in early 2005.
Egypt's Mubarak-era gas deal with Israel has proven highly unpopular with the Egyptian public.
Some critics accused the ousted Egyptian strongman of selling the gas to Israel at below international prices, thus depriving the Egyptian economy of badly needed funds. Others critics have decried what they describe as government complicity in financially supporting Israel's war on the Palestinians.
Egyptian authorities announced plans in November to step up pipeline security with the installation of alarm systems and security patrols carried out by local Bedouin tribesmen."
From Ahram Online - http://english.ahram.org.eg/NewsContent ... with-.aspx
