Globes: Israel in talks to export gas via Egypt

"Is the Israeli government committed to ensure the flow of gas from Israel to Egypt?" This is the fascinating question raised recently by Egyptian government sources as talks warm up for the sale of Israeli gas to Egypt's liquid natural gas (LNG) installations. It could be said that the question tests the limits of hutzpah but there can be no doubt that Egypt has good reason to discuss the matter.

In 2005, the Egyptian government signed an agreement with the Israeli government, binding it to ensure the flow of gas from Egypt to Israel at all times and in all circumstances. Two years ago the Egyptian government made a mockery of the agreement and its commitments, ignored the agreement and allowed Egyptian companies to cancel the gas supply agreement to the Israel Electric Corporation (IEC) through EMG.

As a result the Israeli economy suffered huge economic damage - direct damage alone was estimated at NIS 20 billion. For the past two months Israeli electricity consumers have been paying this damage in full in their bi-monthly electricity bills, which rose 25% and even more to finance the IEC's purchase of more expensive fuels to produce electricity instead of the missing Egyptian gas. The Israeli government took the blatant violation of this agreement submissively. "It's just a commercial deal," Israel's assertive Foreign Minister Avigdor Liberman said disingenuously. MORE