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FINANCIAL NEWS
Egypt’s Natural Gas Holding cancels gas agreement with Israel
23 Apr 2012
(MENAFN) Egyptian Natural Gas Holding Company’s director, Mohamed Shoeb, said that due to violations of contractual obligations, the firm has canceled a deal to supply Israel with natural gas, reported AP.
Shoeb stressed that the unilateral decision to terminate the deal wasn’t political, adding that Israel hasn’t paid for its gas in 4 months.
However, Israel Finance Minister, Yuval Steinitz, said that Egypt’s move represented great concern on both political and economic sides; moreover, it endangers the peace treaties and the peaceful atmosphere between the two countries, insisting that his country is paying a fair price for the gas.
It is worth noting that in 2005, the two sides inked a deal under which the Cairo-based East Mediterranean Gas Co. (EMG), partly owned by the government and a joint venture between Cairo and Tel Aviv, sells 1.7 billion cubic meters of natural gas to the Israeli EMG at a price set at USD1.50 per million British thermal units, a price that Egyptians say is too cheap.
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