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  • 23-04-12

    Egypt's Natural Gas Holding cancels gas agreement with Israel

    (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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