Egypt scraps Israel gas supply deal


Two jets of flame apparently rise from the desert, 5 March 2012 Egypt’s pipelines supplying Israel have faced numerous attacks in the last year

Egyptian officials say they have scrapped an agreement to supply Israel with natural gas.

Israel received around 40% of its gas supplies from Egypt and uses it to generate electricity.

The announcement comes after the cross-border pipeline suffered numerous sabotage attacks which cut supplies.

Israeli Finance Minister Yuval Steinitz said the move was of “great concern”, and overshadowed peace agreements between the countries.

Egypt was the first Middle East country to sign a peace accord with Israel, in 1979, and the deal to supply energy has been a key part of agreements between the two states.

But the BBC’s Jon Leyne in Cairo says the gas deal is deeply unpopular, and one of the charges against former President Mubarak is that he sold the gas too cheaply.

Heavily criticised

Israel has insisted it is paying a fair price for the gas.

A statement from the Egyptian Natural Gas Holding Company said it was ending supplies because the terms of its contract had been breached.

Ampal, the Israeli company which buys the gas, said in a statement that it considers the attempt to terminate the contract “unlawful and in bad faith”, and demanded its withdrawal.

The company is using international arbitration to try to get compensation, after supplies were interrupted following frequent sabotage attacks on the gas pipeline across the Sinai desert in north-eastern Egypt.

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About Eeyore

Canadian artist and counter-jihad and freedom of speech activist as well as devout Schrödinger's catholic

2 Replies to “Egypt scraps Israel gas supply deal”

  1. My Egyptian mate (very moderate Muslim who would rather he and his blonde miniskirt wearing young wife were back in Canberra) reckons Egypt has gone from sort of bad to flippin terrible. I worry for him and his cute Ruski wife. This gas deal stopage does not surprise me but it is the Gypo’s who stand to lose a lot of money…

  2. The world just moved one step closer to a major war that will probably start in the Middle East. Unfortunately there is little to nothing we can do to prevent the war.

    FYI Once Syria falls to the Islamists look for them to move into Jordan.

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