Egypt Says Gas Agreement ´Suspended, Not Cancelled´ (INN) ISRAEL NATIONAL NEWS) By Elad Benari 04/23/12)
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A senior official in the Egyptian army said on Sunday the agreement
of supply of gas between Egypt and Israel was not cancelled but only
According to a report on Army Radio, the official said that the
suspension came about following a dispute regarding the transfer of
Earlier, Channel 2 News reported that Egypt had informed Israel that
it is unilaterally cancelling the agreement. The announcement was
made to EMG, the firm that receives the gas from Egypt.
Egypt’s natural gas company declared, according to the Army Radio
report, that the gas agreement was cancelled for business reasons and
not political ones. According to the report, the company said that
Israel had failed to honor its obligations under the contract and did
not pay for the gas for months.
Conversely, Ampal-American Israel Corporation, one of the partners in
EMG, said that the termination of the agreement is invalid. The
company said it will demand financial compensation, and that it is
considering suing the Egyptian government.
Meanwhile, Energy Minister Uzi Landau said Sunday evening that the
Ministry of Energy and Water has been preparing for about two years
for the possibility of the supply of gas from Egypt coming to an end.
“Israel is working to establish its energy independence and rapidly
develop Israeli supply sources,” Landau said, according to Army
Radio. He noted that for the past year there has not been a steady
supply of gas from Egypt.
The pipeline carrying gas from Egypt to Israel was blown up 14 times
since the Mubarak regime was toppled in February 2011.
(IsraelNationalNews © 2012 04/23/12)
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