Egypt set to review Israel natural gas deal

Egyptian opposition claims the contract price for the gas does not reflect market prices.

The Egyptian government will reconsider the price of the natural gas it exports to Israel as well as the prices in its other contracts, Egypt's Minister of Petroleum Sameh Fahmy told a session of the Egyptian parliament which discussed the natural gas supply agreement between Israel and Egypt.

The debate was held amid pressure and criticism from the Egyptian opposition which claims the contract price for the gas supplied to Israel is too low, and does not reflect market prices. Sameh's comment is the second by a top Egyptian minister after Prime Minister Ahmed Nazif said last month that the Egyptian government was holding talks with Israel on the issue.

Egypt began supplying natural gas to Israel last month. There has been no indication so far from Egypt about reopening its current natural gas supply agreement with Israel Electric Corporation, only about the terms for future contracts. Sources close to the Eastern Mediterranean Gas Company have stressed in the past that the Egyptian government honors its contractual undertakings, and that in any event, it had no intention of unilaterally changing agreements.

Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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