Egypt Plans to Buy Back Israeli Natural Gas



By: REBECCA BITTON  
Published: August 26th 2010
in News » Israel

A natural gas pipeline in the Middle East.

According to a report Tuesday in the Egyptian daily al-Shaab, the Egyptian government will be buying back 1.5 billion cubic meters of natural gas sold to Israel in a deal signed in 2005.

 

The Jerusalem Post reported that Egypt’s Ministry of Petroleum and Mineral Resources was having internal discussions revolving around a decision to repurchase over half of the natural gas at $14 billion. The gas was originally sold to Israel under the deal at only $2 billion.

 

Israel has been accused of causing power outages in Egypt since 2004 due to the gas deal, said Cairo officials. The accusation claims that less natural gas is provided for use by domestic power suppliers, according to an AFP report.

 

Increased power cuts to the Egyptian population have sparked conflict amongst government officials whose ruling party accepts the blame, according to a report in the independent daily al-Shorouk cited by AFP.

 

This has proven to be a significant issue as Egyptian President Hosni Mubarak attempts to regain momentum in his presidency.



Related articles: (Egypt, natural gas, pipeline, petroleum, Mubarak, Cairo)




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