Tuesday, 24 August 2010

Egypt might have to buy back gas from Israel at seven times the price

According to the Egyptian press the government, in view of power shortages caused by insufficient domestic gas supply to power stations, is contemplating the possibility of re-purchasing around 1.5 billion m³ of natural it supplied to Israel.

Back in July 2005 the Egyptian petroleum and mineral resources minister Sameh Fahmy and the Israeli infrastructure minister Benjamin Ben Eliezer signed a $2.5 billion gas deal to supply the Israeli Electric Corporation with 1.7 billion m³ per year.

According to inside sources the Egyptian Ministry of Petroleum would have to repurchase Egyptian gas for around $14 billion, sold to Israel for $2 billion dollars, effectively donating Tel Aviv $12 billion dollars.

Source: Arab Monitor

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

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