Sunday, April 22, 2012

UPDATE: Egypt cancels natural gas deal with Israel, stakeholder says

Al-Masry Al-Youm

"Egypt has terminated a long-term deal to supply Israel with gas after the cross-border pipeline sustained months of sabotage since a revolt last year, a stakeholder in the deal said on Sunday.

Ampal-American Israel Corporation, a partner in the East Mediterranean Gas Company (EMG), which operates the pipeline, said it had notified Egypt it was "terminating the gas and purchase agreement".

The company said in a statement that the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company (EGAS) had notified them of the decision, adding that "EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal".

Mohamed Shoeib, chairman of EGAS, told Al-Masry Al-Youm that EGAS is using its right to terminate the contract due to EMG's breach of the gas supply agreement. He added that the decision was made after a thorough legal review by local and international legal experts....."

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