Saturday 28 December 2013

Israel and Egypt to enter a gas deal

Israel and Egypt to enter a gas deal:

"
Israel and Egypt are discussing a natural gas deal. An energy collaboration is not new between the two
countries except that this time, the natural gas flow will be in the opposite direction, from Israel to Egypt. Historically, Israel has been reliant on Egyptian gas to satisfy 40% of its domestic natural gas needs. An agreement was signed in 2005 stipulating that Egypt would supply Israel with 7 bcm of Egyptian natural gas every year and for a 20 year period. The deal was an economic annex to the 1979 peace treaty between the two countries —the first between Israel and an Arab state. Egypt's state-run gas company terminated this controversial natural gas agreement with Israel in 2012 in the aftermath of the uprising in Egypt that put an end to the Mubarak regime. The pipeline that carried natural gas from Egypt to Israel and Jordan across the Sinai desert was bombed at least 15 times, effectively cutting off supply at normal levels ever since the start of the revolution in Egypt. The disruptions forced Israel to import fuel products with a very high price tag prompting a severe increase in Israel’s energy bill and as a result a jump in electricity prices."

'via Blog this'

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