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Egypt 'ends gas deal with Israel'
Published Sunday 22/04/2012 (updated) 27/04/2012 19:21
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A boy knocks down a concrete wall built in front of the Israeli embassy in
Cairo September 9, 2011. The message on the wall reads, "Egypt is over all"
and "Down Israel". (Reuters/Amr Abdallah Dalsh)
JERUSALEM (Reuters) -- Egypt's energy companies have 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 Mediterreanean Gas Company, which operates the pipeline, said the Egyptian companies involved had notified EMG they were "terminating the gas and purchase agreement".

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

It said EMG, Ampal, and EMG's other international shareholders were "considering their options and legal remedies as well as approaching the various governments."

Before the sabotage, Egypt supplied about 40 percent of Israel's natural gas, which is the country's main energy source.

Israeli officials have said the country was at risk of facing summer power outages due to energy shortages.

Companies invested in the Israeli-Egyptian venture have taken a hit from numerous explosions of the cross-border pipeline and are seeking compensation from the Egyptian government of billions of dollars.

Ampal and two other companies have sought $8 billion in damages from Egypt for not safeguarding their investment.

The Egyptian decision is a potential blow to the country's ties with Israel, already tested by the toppling of Israeli ally President Hosni Mubarak a year ago.

Egypt was the first of two Arab countries to sign a peace treaty with Israel, in 1979, followed by Jordan in 1994.
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1 ) Arnold / Canada
22/04/2012 22:58
If this cancellation goes through Egypt will look fantastic to the Arab world but less than a 3rd world despotic regime to the business and economic world. No person in their right mind would want to invest in Egypt. If a deal is not a deal then nothing in business practice will be safe when it involves Egyptian reliability and promised word.

2 ) george / egypt
22/04/2012 23:54
A wise decision and right step We as Palestinians support it Israel must learn that It's an enemy that steals land and kills a man This the begining Israel is to expect more

3 ) Tibi / Tubas
23/04/2012 00:15
According to the East Mediterreanean Gas Company: "Egypt does not understand what it is doing. This move will set back the country, politically and economically, 30 years. This is a breach of the peace agreement with Israel."

4 ) ian / australia
23/04/2012 00:23
Not that I know anything about EMG or gas, but this story gave me Schadenfreude. Is that wrong? Am I a bad person?

5 ) Lukas / AntiZionist
23/04/2012 00:28
I hope this is definitive. About time this catastrophic deal is terminated.

6 ) Joe Fattal / USA
23/04/2012 01:50
Now Israel going to feel what Gaza feels when they are out or short of fuel.

7 ) Julie / USA
23/04/2012 01:51
well, izrael....now you face punishment for the punishment you forced onto Pals....shape up, abide by international law, stop acting like a victim and quit your whining....oh, and enjoy the power outages !!!

8 ) Ido / occupied Palestine
23/04/2012 03:20
Finally some good news!

9 ) Mark of Lewiston / USA
23/04/2012 08:13
Somebody needs to report both sides of the dispute. Israel talkbackers on Israeli sites are talking war. And nobody has all the facts. It is a business dispute. Israeli papers say that the Egyptian Army says it is over payments. Somebody needs to do more than reword press releases from the companies on one side.

10 ) Tony B? / ME
23/04/2012 11:29
Hopefully this is one more step by Egypt to annulling the Camp David peace accords. Once that is out of the way Israel can legally and justifiably take back the Sinai. Just like with Gaza, this all goes to show that nobody can trust Muslims to keep promises. Deception is written into their religion.

11 ) Colin Wright / USA
26/04/2012 09:01
Arnold #1 'If a deal is not a deal then nothing in business practice will be safe when it involves Egyptian reliability and promised word.' Israel could always sue to get back the money she paid out in bribes. Find out what court is handling Mubarak's estate and get in line.

12 ) Colin Wright / USA
26/04/2012 09:03
Mark of Lewiston #9 'Israel talkbackers on Israeli sites are talking war...' That sounds like my Israel! Go baby, go!

13 ) EE / UK
26/04/2012 21:03
It is time for Israel to take Sinai back where it belongs.
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