Egypt is prepared to renew gas supplies to Israel at a new price and as part of a new contract, the country's Minister for International Cooperation Fayza Abul Naga said today. She said, "From Egypt's point of view there is no objections to reaching a new agreement with new conditions and a new price."
Yesterday Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) told the Tel Aviv Stock Exchange that Egyptian government holding companies had unilaterally cancelled its Israel gas supply agreement. The Egyptians claimed they were cancelling the agreement due to non-payment by EMG, while EMG is seeking compensation from the Egyptians through arbitration for disruption of supplies following repeated terrorist attacks on the Sinai pipeline.
Although the Egyptian cancellation is a violation of the economic clauses of the Israel Egypt peace agreement, Prime Minister Benjamin Netanyahu is playing down the cancellation as a commercial rather than diplomatic dispute.
Published by Globes, Israel business news - www.globes-online.com - on April 23, 2012
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