Relations Deteriorate: Egypt Unilaterally Ceases Natural Gas Deal with Israel
The Egyptian government has announced the unilateral termination of gas and purchase agreement with Israel. Sources close to the Israeli corporation responsible for the pipeline stated that the cancellation of the agreement will set Egypt back 30 years. Egypt is obligated to supply gas to Israel in the framework of the three decade-old peace agreement between the countries.
Egypt’s national gas company EGAS announced Sunday that it will be cancelling its natural gas supply deal with Israel.
Ampal-American Israel Corporation, a partner in the East Mediterranean Gas Company (EMG), which operates the pipeline, said the Egyptian companies involved had notified EMG they were “terminating the gas and purchase agreement”.
The company said in a statement that the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company had notified them of the decision, adding that “EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal”.
It said EMG, Ampal, and EMG’s other international shareholders were “considering their options and legal remedies as well as approaching the various governments.
Sources close to EMG said in response, “Egypt does not understand what it is doing. This move will bring back the country - politically and economically – by 30 years. This is a breach of the peace agreement with Israel.”