"The claims by 'The New York Times' about the low prices for gas paid by Israel to Egypt are incorrect," said Merhav Group SVP Nimrod Novik at an energy conference in Ramat Gan. His remarks were in response to claims by Egypt's new government about alleged corruption in the gas supply contracts signed by East Mediterranean Gas Company (EMG). Merhav, owned by Yosef Maiman, is a shareholder in EMG.
"The price we receive is higher than the price Qatar receives for its gas, and it is also higher than the price Russia receives for its gas deliveries to Germany," added Novik. "'The New York Times' wrote that EMG pays $3-4 per million BTU for gas from Egypt, whereas Germany pays $7.50 per unit for gas from Russia, but it forgot to take transportation costs into account. The calculations were based on a transport cost of $1 per unit from Russia to Germany, whereas the true cost is about $5. The senior Egyptians officials accused of corruption should be awarded a prize."
Novik also criticized many reports in the Egyptian media. "Everyone worried about Israeli-Egyptian relations should be shocked by the flood of nonsense published in the Egyptian media on relations between the two countries. Some of the Israeli media repeat this nonsense, without applying the proper filters. People who understand that the issue of the 'Israeli spy' is unadulterated drivel do not apply the same assumptions to Egyptian media reports about the gas issue.
"There are ridiculous claims in the Egyptian media that gas is supplied to Israel because President Mubarak fell in love with Israel, or because he received an $18 billion bribe, which is more than the contracted gas deliveries by EMG for the next 20 years. I don’t think that the Israeli media should provide a platform to the opponents of peace with Israel, as often reflected by the mainstream Egyptian media in order to damage the gas project, end it, and incite the public against it."
Novik says that the Egyptian media are lying about the corruption, and says that he is appalled when he sees the reports in the Israeli media.
"The previous Egyptian government proved its reliability in the supply of gas, which survived many tests, the greatest of which was the accusation that Israeli tanks in Lebanon were fueled by Egyptian fuel," Novik says. "Even then, the gas flow was not stopped. Now, too, following the change in regime, a revolution, and two terrorist attacks, it was decided to resume the flow of gas after the attack. The new government in Egypt is proving that it is like its predecessor on one matter - Egypt honors international agreements. They twice had an opportunity to evade them in the last two attacks, and they didn’t do it.
"Egypt has demonstrated determination in sticking with the peace treaty and the fuel export agreement to Israel, and it seems that, in contrast to the Egyptian media, it does not capitulate to pressure from the streets and populism. Even if senior Egyptian officials do not publicly say so, that is the reality. The Egyptian government won't give up $2.5 billion a year so easily."
Published by Globes [online], Israel business news - www.globes-online.com - on June 15, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011