In a letter to Knesset Economics Committee chairman MK Shalom Simhon (Labor), Egypt-Israel natural gas project partner Joseph (Yossi) Maiman wrote, “The mood of uncertainty about the natural gas pipeline project had recently improved. Egypt is aware of this development, and is adjusting its behavior to accordingly.”
Maiman does not usually comment in public on the Egypt-Israel natural gas project.
Maiman commented that the ambiguity about Palestinian involvement in the deal disturbed the Israeli side. He added that his company had contacted the Palestinian Authority (PA) to make sure that cases where funds had disappeared “and used for purposes inconsistent with the Israeli interest” would not recur. He said the answer he had received was that Muhammad Rashid, PA chairman Yasser Arafat’s economic advisor, was handling the project personally.
Maiman is partnering Egyptian businessman Hussein Salem and the General Petroleum Company of Egypt in the project. The negotiations between the consortium, called Eastern Mediterranean Gas (EMG), and Israel have been frozen for two years, due to uncertainty about the project and political considerations on the part of Egypt.
This matter reached a critical point for the Israelis government, given the urgency of deciding on a second natural gas supplier, in addition to Yam Thetis. The government will have to choose between Egypt and the bid by British Gas, which is offering to supply natural gas from the fields off the Gaza coast.
In the past week, a dispute has arisen between British Gas and Merhav, which were negotiating a joint venture to become Israel’s second gas supplier.
Published by Globes [online] - www.globes.co.il - on June 18, 2003