Tuesday, 14 December 2010
Egypt signs gas deal with Israel
Egypt's East Mediterranean Gas (EMG) company has signed a multi-billion dollar agreement with an Israeli company to buy Egyptian natural gas for the next 20 years.
The contract stipulates that EMG will provide Leisrael with 1.4 billion cubic metres of gas per year for the next 20 years. The gas delivery is expected to begin in the first or second quarter of 2011. The $4.2 billion contract is estimated to reach $10 billion over time.
The new deal is part of an agreement EMG signed with US-Israeli consortium Yam Thetis in 2008. The deal stipulated that Egypt would sell 2 billion cubic metres of natural gas and fertiliser to Israel until 2015.
EMG is a joint company owned by Egyptian businessman Hussein Salem, Egypt Natural Gas Company, Thailand's PTT, Israel's Merhav Group, Ampal-American Israel Corp and American businessman Sam Zell.
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