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Egyptian companies EGPC and EGAS came out of the talks on buying gas from Israel

In the afternoon of 6 December, the Egyptian gas companies EGPC and EGAS were informed about termination of talks with Israel on gas purchases.

In a statement the companies said that the order to freeze the negotiation process was received from the government after an international arbitration court ordered Egypt to pay Israel’s «Electric company» payment.

The Egyptian authorities, in turn, announced his intention to appeal against the decision of the international arbitration.

Earlier, on 6 December, international arbitration Cairo was obliged to pay the Israeli company «Israel Power» compensation of 1.76 billion U.S. dollars for the failure of gas supplies after the overthrow of President Hosni Mubarak in 2011.

Initially, the «Israel Power» sought from the company EMG and national gas companies of Egypt’s payment of four billion dollars as compensation for damages.
In the lawsuit it was noted that since February 2011 as a result of multiple explosions on the main gas pipeline leading to Israel, supplies natural gas from Egypt constantly frustrated.
In April 2012, the Egyptian government announced that refuses to perform signed in 2008 agreement on sale of gas. This agreement was subjected in Egypt, criticized, since opponents of the Mubarak regime argued that prices are too low.

Thus Israel has lost 18% of its required energy. «The electric company» had to switch to diesel, which is much more expensive. Note that the costs were passed on to the consumers – electricity prices rose by almost a third. Will the Israelis paid some compensation from the amount received from Egypt, not reported.

Egyptian companies EGPC and EGAS came out of the talks on buying gas from Israel 06.12.2015

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