Netanyahu to testify today on Israel's natural gas framework

Israeli Prime Minister Benjamin Netanyahu, in his capacity as Economy Minister caretaker, is expected to testify today (Tuesday) in front of the Knesset's Economic Affairs Committee in his push to approve a natural gas regulatory framework. For Mr. Netanyahu, who has not made himself available to local Israeli media regarding the matter, it will be a rare moment in which opposition Knesset members, the most prominent being Shelly Yechimovich, a former journalist, will be able to ask him unvetted questions concerning the state natural gas strategy, energy security and other matters. It is expected that news channels and business websites will broadcast the prime minister's testimony live.

The natural gas regulatory framework suffered a blow this week when Egypt announced its freeze on natural gas deal negotiations with Israel following a decision of the ICC panel to award the Israel Electric Corp (IEC) about $2 billion in compensation from Egypt following the cancellation of a natural gas contract from 2008. Mr. Netanyahu will be hard pressed to explain how his government ignored this expected development and how he plans to overcome this obstacle and whether he will surrender to Egyptian demands to give up on the compensation.

However, Mr. Netanyahu might find some solace in the ICC panel's decision. He might point out to lawmakers that Nobel Energy, the leading partner in the gas monopoly in Israel, has threatened to take Israel to arbitration at the same institution and to ask for billions of dollars in compensation if the framework is not be approved.

One way or another, the committee is expected to complete its deliberations in the next few days and its "decision" is not binding, so in his capacity as Economy Minister, Mr. Netanyahu will be able to approve the framework by signing article 52 of the antitrust law.

And then the show will go on, probably, through its opponents' petitions to the High Court.

Ya'acov Zalel