Egypt ‘Unilaterally Breaks Off Gas Deal’

Egypt ‘Unilaterally Breaks Off Gas Deal’

By | 2012-04-22T16:36:49-04:00 April 22nd, 2012|News|0 Comments

Cairo breaks agreement that is part of the peace treaty between the countries, damaging Israeli firms, says Channel 2. Gil Ronen – Israel National News  Egypt informed Israel Sundayafternoon that it is unilaterally cancelling the agreement of supply of gas to Israel. The announcement was made to EMG, the firm that receives the gas from Egypt, and reported onChannel 2 news. The peace treaty with Egypt includes afinancial appendix, in which Egypt agrees to supply Israel with oil. Several years ago the appendix was changed so that the oil was replaced by gas. The treaty commits Egypt to supply Israel with the amount of gas it requires for a specified period, in exchange for payment. Egypt’s unilateral abrogation of the treaty causes “tremendous financial damage” to Israel, and to the Amgas and Ampal companies, according to Channel 2. However, the primary damage is diplomatic, reporter Amnon Abramovich said. The pipeline carrying gas from Egypt to Israel was blown up 14 times since the Mubarak regime was toppled in February 2011.