Egypt scraps Israel gas supply deal

www.bbc.co.uk...

Gas deliveries to Israel dried up for a total of 225 days in 2011 and 66 days during the first three months of 2012, and ceased after an explosion on 5 March, according to Ampal-American Israel Corporation - a stakeholder in East Mediterranean Gas Company (EMG), which operates the cross-border pipeline.

The shortages have seen the state-owned Israel Electric Company increase rates by a third and warn of rolling blackouts this summer

since no one has posted this

this could be interesting to see what israel does.
with 40% of its supplies cut off

reply to post by illusive man


How utterly antisemetic of them. I mean, obviously Egypt wants to march all Israelis, and all Jews for that matter, into the gas chambers. Because denying them the fuel reserves to launch an attack on Iran is the exact same thing as supporting genocide. And specifically a new "holocaust".

there, since I said it, I've saved the israeli-firsters the effort.

I too am interested to see what happens. I'd suspect they'd ask for more reserves from the US if required for an attack on IRan. I also suspect that the citizens of ISrael, not the army, will feel the brunt of the fuel shortage.

Wonder what the US has to say about this? Egypt seems hell bent on stirring the pot lately.

Interesting spot and thanks for sharing.

Makes me wonder what Israel could actually do though to be honest. I do not think the US would allow an attack on Egypt as that would destabilise the entire region - Egypt is far stronger than during the last conflict between the two and i do not think Turkey would allow an attack on Egypt either.

Possibly commercial / economic sanctions? Whatever, it potentially further inflames a powder keg of a region.......

Funny how people do not jump the gun when they see word Israel. No weird assumptions ,too.
Gas is natural gas. Not fuel. As in - gas for stoves and ctr.If you can fly with that....
Actually, it is practically hilarious. Israel that is under rocket attacks from Gaza is giving 70% of electricity to it. But it is criticised.
Egypt stops supplying gas despite existing contract while there was 0 provocations from Israel - and it is "hooray it is preventing strike on Iran".
You people are very objective. Very,very objective. Congrats.
As for reaction - electricity prices jumped up in Israel. Before you organise a party and start dancing ,while wearing funny hats - Palestinians are also going to pay more because they get their electricity from evil genocidal murderous Israel.
There are sea gas deposits though in Israeli waters, and it will be available in a couple of years. Before it everyone here will pay more.

Well ,israel can always ask russia for the gas being as russia has the most. If russia says no israel can ask iran for the gas since iran has the second most.

Or israel can just pay the three to six dollars a btu more for the gas from egypt and just ask the u.s. government to cover the difference using u.s. taxpayer monies. That would be the win win option.

Every leader in that region is an immature spoiled brat... seriously they are so juvenile.

I say lock them all in a room and do not let them out till they kiss and make up.

reply to post by ZeroKnowledge


Energy prices are sky rocketing across Europe, why should Israel be any different? And at the end of the day, it is up to individual companies who they sell to - they do not have to sell to Israel if they choose not to.

However, as there seems to have been a prior contract, this does smack of childishness from the Egyptian company concerned. Hit them with massive international fines (breach of contract) and then let them sell to who they want.

reply to post by illusive man


What BBC left out of the story is this:

Mohamed Shoeb, who heads the Egyptian natural gas holding company, said the government owned firm together with the General Authority for Petroleum annulled the contract with East Mediterranean Gas Company (EMG) which exports gas to Israel because it has not paid for the purchased gas for months.

And this:

EMG, the other party to the contract, was founded by fugitive businessman Hussein Salim, who is in detention in Spain pending extradition, reported Xinhua.

Salim is accused of involvement in exporting natural gas to Israel at lower-than-market prices.

The natural gas deal between Egypt and Israel was signed in 2005 at a price that critics said was far below the market value.

zeenews.india.com...

reply to post by frazzle


Brilliant extra info thank you. So, rather than being a childish snub aimed at Israel, it actually appears the company concerned have legitimate grievance and reason to cancel the contract? That does put a TOTALLY different spin on it.

nevermind
deleted.

reply to post by illusive man


Yet Israel has the largest natural gas field in the Middle East so won't be needing Egyptian natural gas! Even though Israel was buying Egyptian gas at a very cheap price, that should hit the Egyptian economy big time....or whats left of it!

What? Israel hasn't paid for the oil they've received?

Did our check bounce or something??

Originally posted by ZeroKnowledge

Actually, it is practically hilarious. Israel that is under rocket attacks from Gaza is giving 70% of electricity to it. But it is criticised.

Oh yes, those kind Israeli's "giving" gas to the Palestinians - who are effectively their prisoners.

I guess that gas is a fair exchange for their land? Israel gives them some gas to cook the food they are "allowed" to eat on implements they are "allowed" to import for use, and in return the Palestinians just have to watch their homes being bulldozed, their crops being destroyed, their land being stolen from under their feet...

I hope Egypt keeps this up, it's about time Israel faced sanctions from the rest of the world over the way they are stealing and pillaging.

If any other nation acted in the way Israel has they would become an isolated state. But for Israel it's okay to imprison and steal from an entire group of people.

It's time to cut Israel out of the international arena until they are capable of playing by the rules we all live by. We cannot continue to criticize Iran or other nations while supporting the Israeli government and ignoring their attacks on the Palestinian people.

So in fairness Israel should cut off the FREE electricity that it provides to all Palestinians? Brilliant. And while we're at it lets cut off the oil the USA gets from Saudi Arabia. And the Natural Gas from Canada. After-all, the US supports Israel bombing Iran too. Yea, hooray. Let's just end world trade to screw Israel. I'm so proud of you guys.

reply to post by dashen


The Palestinians (Gazans) have cut a deal with Egypt for electricity.......

jeez guys, pay attention to whats going on outside the USA

Originally posted by bluemirage5
reply to post by illusive man

 

Yet Israel has the largest natural gas field in the Middle East so won't be needing Egyptian natural gas! Even though Israel was buying Egyptian gas at a very cheap price, that should hit the Egyptian economy big time....or whats left of it!

Why? They could sell it to Europe instead. No reason for this to damage Egypt at all. In actual fact, it will benefit them to sell to others as the prices would not be at the very low prices that Israel managed to get from this company (which they subsequently haven't paid).

Kudos to Egypt for doing this. Hopefully other nations will follow suit with other ridiculous deals that rip off the locals (i mean this for every nation on the planet that is suffering from resource rape).

reply to post by Flavian


Egypt has FINISHED....got it?

Israel is sitting on one of the largest natural gas reserves in the world, ya think they give a sh*t about Egypt cutting off supplies?

Originally posted by dashen
So in fairness Israel should cut off the FREE electricity that it provides to all Palestinians? Brilliant. And while we're at it lets cut off the oil the USA gets from Saudi Arabia. And the Natural Gas from Canada. After-all, the US supports Israel bombing Iran too. Yea, hooray. Let's just end world trade to screw Israel. I'm so proud of you guys.

Did you read the link? Israel has not paid for its fuel this year, giving the company concerned a perfect opportunity to cancel a contract that should never have been agreed at that price in the first place (and for which someone is under investigation).

The Egyptian company was, in effect, being ripped off twice by Israel - first by the deal and then by non payment. Good for them i say.

reply to post by bluemirage5


No, not at all. Well maybe until the field is up and running but then no, they certainly wouldn't. However, why criticise the Egyptian company? They haven't done anything wrong and can instead now sell to Europe......

reply to post by Flavian


Believe you me, this is not going to hurt Israel, only Egypt in the long run