The Jordanian government has agreed to reopen its natural gas contract with Egypt and to pay a higher price, reports Egyptian newspaper "al-Mal". Israel has a similar gas contract with Egypt, and there have been several reports in the Egyptian media that the Egyptian government wants to double the price of gas it sells to Israel. "al-Mal" says that the agreement with Jordan could put pressure on Israel to agree to a substantial price hike.
"al-Mal" quotes Prime Minister Essam Sharaf as saying that he hopes to boost revenue from natural gas sales by $3-4 billion.
"al-Mal" quotes Egyptian Natural Gas Holding Company (EGAS) chairman Hassan al-Mahdy as saying that the Jordanian government had agreed to adjust the price it pays for its gas under a 2004 agreement.
Egypt said last month it would review its gas contracts with other states, including Israel and Jordan, amid accusations the government of former President Hosni Mubarak had improperly negotiated the sale of gas at preferential prices. Egypt's public prosecutor ordered former energy minister Sameh Fahmy and five other senior energy officials detained for questioning over the Israel gas deal.
East Mediterranean Gas Company (EMG) supplies 40% of Israel's gas needs. Yossi Maiman owns 20.6% of EMG through Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) and his private company Merhav Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011