Egypt Cancels Israeli Gas Deal
Egyptian companies have terminated a long-term deal to supply Israel with natural gas.
The moves places Israel in risk of facing summer power outages due to energy shortages.
Ampal-American Israel Corporation, a partner in the East Mediterreanean Gas Company (EMG), which operates the cross-border pipeline between the two nations, 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".
It said EMG, Ampal, and EMG's other international shareholders were "considering their options and legal remedies as well as approaching the various governments".
The pipeline has sustained attacks from saboteurs following the fall of the Mubarak regime.
Before the sabotage, Egypt supplied about 40 percent of Israel's natural gas, which is the country's main energy source.
The cut off will undoubtedly place greater focus on accelerating Israel's development of recent gas discoveries in the Eastern Mediterrean.