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Monday, 01 December, 2008, 23:40 GMT | more >>

Egyptian gas flows to Israel



By Nassir Shirkhani 

Egypt has started pumping natural gas to Israel under a 2005 agreement which requires the Egyptian government to sell 1.7 billion cubic metres of gas per year to Tel Aviv.

Industry sources told Upstream that gas exports began flowing late last month. The Egyptian authorities have remained silent on the gas sales to Israel because of the sensitive nature of the agreement.

Gas supplies are being pumped via a 100-kilometre subsea pipeline runnig from the Egyptian Mediterranean port of El-Arish to the Israeli city of Ashkelon.

The Egyptian gas is being sold to East Mediterranean Gas Company (EMG), a consortium of the Egyptian General Petroleum Corporation, Israel's Merhav group and Egyptian businessman Hussein Salem.

Egypt is now getting $ 2.75 per million British thermal unit for the gas it sells to Israel.

Industry sources said Egypt wants EMG to pay a higher prices in future.

The deal is controversial as the price is seen as very low at a time when Egypt has to import fuel oil at a much higher cost to meet local demand. At the same time Israeli raids against Palestinians in Gaza have hardened Egyptian attitudes towards Israel.


Monday, 10 March, 2008, 09:39 GMT  | last updated: Monday, 10 March, 2008, 09:39 GMT

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