Sunday, April 22, 2012
Egypt Cancelling Natural Gas Deal With Israel
I am surprised this has not happened sooner. The pipeline that supplies the gas to Israel has been blown up, sabotaged or attacked at least 14 times. Before the sabotage, Egypt supplied about 40 percent of Israel's natural gas, which is the country's main energy source. And now, Egypt is cancelling its natural gas deal with Israel.
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." Read more from Haaretz.com
I am sure Egypt knows very well what it is doing as the Muslim Brotherhood would like nothing better than for Egypt's peace treaty with Isreal to be destroyed, which will be a prelude to war. The good news is that Israel has plenty of its own natural gas now, so Egypt is doing Israel a favor. However, this could cause a muslim "gas grab" in the region, and start a major war between the Jews and the arabs. Read about it here.
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