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Egypt’s treasury to save LE20 billion on new gas agreements: Minister

Egypt's minister of petroleum is determined to redraft Egypt's gas supply contract with Israel

Ahram Online, Sunday 8 Jan 2012
Gas Pipeline
The new gas prices would be between $5-10 per MMBTU Photo: Reuters
Views: 1741
Views: 1741

Egypt has reached agreements on gas export tariffs with all countries in the region except Israel, says Egypt's minister of petroleum and mineral resources, Abdullah Ghorab, in interview with Egyptian daily newpaper Al-Masry Al-Youm.

Ghorab stated that the new gas prices will save for Egypt’s treasury about LE20 billion ($3.3 billion).

The minister's office announced that all new agreements, including the one they are working on with Israel, stipulate that the price of gas would be between $5-10 per MMBTU (million metric British thermal units), and that the price will never be lower than $5.

Ghorab issued a veiled threat to Tel Aviv that shows his determination to reach the goal of renegotiating all standing agreements. "If I am not successful in altering the agreement with this country, I will resign my post," according to the Israeli business newspaper GLOBES.

If the deal materialises, the price Israel would pay Egypt for gas would be 30 per cent higher than the previous price, and this does not include brokerage fees Israel must pay to the East Mediterranean Gas Company (EMG), GLOBES added.

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09-01-2012 01:47am
why afraid form negotiating with the Israelis?
It seems that they have a cowered and non smart government who are afraid from negotiating to get the full price for the Israelis and non smart enough to know how to do the contract. It seems like the Egyptians know how to be tough on each other, on the poor, on the ekhwan almuslemeen,and they don't have mind to be tough with their enemies. sure they have problem.
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