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

Ahram Online, Sunday 8 Jan 2012

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

Gas Pipeline
The new gas prices would be between $5-10 per MMBTU Photo: Reuters

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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