Egypt Cuts Off Natural Gas Exports to Israel
- Posted on April 23, 2012 at 10:51am by
Billy Hallowell
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Israeli Prime Minister Benjamin Netanyahu
JERUSALEM (The Blaze/AP) — Israel‘s prime minister on Monday scrambled to contain the damage from Egypt’s decision to cut off natural gas exports, dismissing the matter as a mere “business dispute” as he tried to prevent a full-fledged diplomatic crisis.
The comments by Benjamin Netanyahu contrasted with earlier statements by Cabinet ministers who warned the Egyptian move threatened to harm already shaky relations between the two nations.
“We don’t see this cutoff of the gas as something that is born out of political developments,” Netanyahu said. “It’s actually a business dispute between the Israeli company and the Egyptian company.”
Abram.org has more about the recent Egyptian actions that will certainly create more angst between the two nations:
Egypt has unilaterally terminated its natural gas export contract with Israel, a shareholder in the export operating company, East Mediterranean Gas Company (EMG), said Sunday night.
EMG told Ampal-American Israel Corporation, which owns a 12.5 per cent stake in EMG, that Egypt was ending the Gas Supply and Purchase Agreement between the two parties.
“Egyptian General Petroleum Corporation [EGPC] and the [state-run] Egyptian Natural Gas Holding Company [EGAS] notified EMG that they were terminating the Gas Supply and Purchase Agreement between the parties,” the Ampal statement read.
The company added that “EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal,” noting that EMG, Ampal and EMG’s other shareholders were “considering their options and legal remedies as well as approaching the various governments.”
In this July 12, 2011 file photo smoke and flames rise into the air after gunmen blew up a portion of the Egyptian natural gas pipeline to Israel.
Israel and Egypt signed a historic peace treaty in 1979, and while relations have never been particularly warm, the quiet border has been critical for the security of the two neighbors. Egyptian energy exports to Israel and other business ties have helped keep the peace.
Since long-time Egyptian President Hosni Mubarak was toppled in a popular uprising last year, Israel has grown increasingly jittery about the state of relations with Egypt, particularly since a series of pipeline attacks by Islamic militants have repeatedly disrupted gas shipments to Israel. The rise of Islamic parties in parliamentary elections has only added to those fears.
Late Sunday, Egypt’s national gas company said it had cut off exports to Israel, saying its Israeli partner had not paid its bills.
Former Egyptian President Hosni Mubarak
Israeli officials say the payments were halted because repeated attacks by militants on the gas pipeline have all but cut off gas shipments for the past year.
Israel’s finance minister, Yuval Steinitz, called the decision a “dangerous precedent that overshadows the peace agreements and the peaceful atmosphere.”
That view was echoed by Israeli Energy Minister Uzi Landau. “The pretext is that this is a business dispute, but we see it is not a business dispute,” he told The Associated Press, warning that the gas cutoff would worsen power shortages expected this summer and hurt ties between the countries.
Israel and Egypt signed a 20-year agreement for Egypt to provide natural gas to Israel in 2005.
That deal has become a symbol of tensions between Israel and Egypt since last year’s uprising. For many Egyptians, it typifies the close relations Mubarak forged with Israel and how his associates benefited greatly from such business deals.
Critics charge that Israel got the gas at below-market prices, a charge Israel denies, and that Mubarak cronies skimmed millions of dollars off the proceeds. Egyptian militants have blown up the gas pipeline 14 times since the uprising more than a year ago.
The repeated disruptions have raised tensions with Israel, which relies on Egypt for 40 percent of its natural gas needs.
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trueamerican40
Posted on April 23, 2012 at 7:56pmWhen the next Arab-Israeli war (before the new year) begins, Israel will wipe out Iran’s thug base (Hamas and Hezbollah) located in Damascus FIRST and then Tehran. Book it!
Report Post »Windsong
Posted on April 23, 2012 at 7:51pmEgypt has gone from one of the most popular, beautiful and interesting countries to visit and/or study in a dangerous, angry and violent place that airlines, cruise ships and tourism companies should refuse to go – in one year. Egypt was known as an educational mecca…now it is known as a biased, anti-semetic, violent country that has little to offer modern medicine, technology or education.
What a sad, sad day it will be for the Egyptians when they are ruled by the Muslim Brotherhood – aka jihadists. Now, instead of loving their children and giving them lives of hope and prosperity, they will simply teach them that it is honorable to strap a bomb to themselves and murder themselves and other people. Yes, it is a very sad day for Egyptians and their country.
Israel, however, will survive. They are smarter, more diligent, more religious and more free than any of the Middle East/African countries. Israelis are more creative and will develop their won energy because they have intelligence and God on their side. Israel is also the only country in the Middle East that can – and always has helped other nations in a natural disaster, send food or medical aid in emergencies and offer a kind hand to a distressed populace. Guess who was firsst to help in Haiti? Your loss, Egypt. You just stabbed the only true friend you’ve ever had in the back. I guarantee the Ayatolla will send you nothing. He doesn’t care about you…never has.
Report Post »jackact
Posted on April 23, 2012 at 1:42pmYou mean Egypt, the country overtaken by the Muslim brotherhood as concented by the Obama administration that foretold the ‘Arab spring’?
Report Post »Stoic one
Posted on April 23, 2012 at 12:26pmbehind the scenes.. both Egypt & Libya have been told by the IMF and other international lenders to get their finances in order. A key component of their finances is ENERGY. Methane is the cheapest energy that is available to either country and the people in these countries are cared for by the government which supplies the energy needs of the populace. So the countries have been mismanaged for decades and now the governing bodies will use any excuse to try and ‘fix’ things; using misdirection is a common practice here, so why not there?
Report Post »mycomet123
Posted on April 23, 2012 at 12:12pmI don’t worry about Israel. They are the most protected people on the planet because they have the Trinity protecting them. Jesus will come & protect & save them and they will finally except Him as their Lord and Savior( Zechariah 12). Joel 3:19-21 Egypt shall be a desolation, & Edom shall be a desolate wilderness for the violence against the children of Judah, because they have shed innocent blood in their land. But Judah shall dwell forever, and Jerusalem from generation to generation. For I will cleanse their blood that I have not cleansed: for the Lord dwelleth in Zion. (Matthew 23:35-36 Upon the house of Israel will come all the righteous blood that has been shed on earth, from the blood of righteous Abel to the blood of Zechariah son of Berekiah, whom you murdered between the temple & the alter. I tell you the truth, all this will come upon this generation. The blood guilt is passed from generation to generation since there is no atonement yet for the house of Israel since they have not excepted Jesus as their Saviour. Once Jesus comes to save Israel they will except Him as their Saviour than there will no longer be a blood curse on the house of Israel. Jeremiah 31:29-34. The house of Israel has been persecuted for the last 6,000 years (part of the plan). The next 1,000 years they will rule the planet & all nations will bow down to God’s laws. Zechariah 14:17. The kingdom of this world‘s has become the kingdom of the Lord’s & of His Christ. Isaiah 2:2-4.
Report Post »trueamerican40
Posted on April 23, 2012 at 6:55pm“And a highway will be there [the New Jerusalem]; it will be called the Way of Holiness. The unclean will not journey on it; it will be for those who walk in that Way; wicked fools will not tread upon it. No lion will be there, nor will any ferocious beast get up on it; they will not be found there. But only the redeemed will walk there, and the ransomed of the Lord will return. They will enter Zion with singing; everlasting joy will crown their heads. Gladness and joy will overtake them, and sorrow and sighing will flee away.” ISAIAH 35:8-10. I am so looking forward to that day. Amen.
Report Post »cromag11b
Posted on April 23, 2012 at 11:26amThat’s ok, we’ll have NG tankers on their way by the end of the week. For free.
Or maybe since god loves them so much he’ll make some magically appear.
Report Post »JP4JOY
Posted on April 23, 2012 at 11:22amMaybe Israel should stop doing any business with Egypt. It might be a bit of a hardship in the beginning but the stability it would bring could be worth it. Also an explosive accident at the main gas facility would be a shame.
Report Post »SONOFNANYE-HI
Posted on April 23, 2012 at 11:17amIt’s time for Israel to take back the Sinai.
Report Post »Jaycen
Posted on April 23, 2012 at 11:28amAgreed. They never should have given a single square inch of land after the 7 Days War.
Report Post »Watchyer6
Posted on April 23, 2012 at 5:18pmIsrael voluntarily withdrew from Gaza and look what happened- Hamas turned it into a launching pad for rockets targeted at Israeli civilians. Now, thanks to Egypt, Sinai has also become a base for terrorist attacks on Israel.
Report Post »lukerw
Posted on April 23, 2012 at 11:16amBecause Egypt is so Primitive and decentralized… people use Propane Tanks for Heating & Cooking… and a new tax upon this actually caused the public up-rising! So, Natural Gas is not of Great Benefit in Egypt; So, Egypt exports it!
Report Post »000degrees
Posted on April 23, 2012 at 11:11amIsrael has been going through this since Moses lead them out if slavery in Egypt. When Israel kept it’s trust in God they prospered. When they neglected to trust in God they went through some trying times. Makes me wonder where they are now in a historical perspective….
Report Post »lukerw
Posted on April 23, 2012 at 12:08pmAccording to Ancient Egyptian history… Pharaohs always controlled the land called Israel, appointed Kings, and received Tribute!
Report Post »Detroit paperboy
Posted on April 23, 2012 at 11:09amAnd we will be cut off tooooo……..I do not trust MuSlimes !!!!!
Report Post »JayCee
Posted on April 23, 2012 at 11:44amYou actually think we import natural gas?
Report Post »There is a glut of NG in the US and the price has dropped dramatically along with stock prices of NG industry companies.
Gonzo
Posted on April 23, 2012 at 11:06amI guess the Egyptian economy is so robust they don‘t need Israel’s money? Brilliant. Next they will blame Israel because they are broke. Unless of course Barry sends them a few billion to make up for the loss of income.
Report Post »HorseCrazy
Posted on April 23, 2012 at 11:20amand he would send them money in a heart beat…what was that quote from his book…I will always stand with the muslims
Report Post »AJAYW
Posted on April 23, 2012 at 11:30amWouldn’t suprise me at all that he would tell them he would make it up to them, Gonzo
Report Post »DIVINEPROVIDENCE1776
Posted on April 23, 2012 at 11:01amTime for Israel to get energy independent, especially from islamic extremists. When we get MAObama out we need to do the same.
I stand with Israel!
Report Post »hersey10
Posted on April 23, 2012 at 11:01amWhite House is silently cheering , guaranteed .
Report Post »AmazingGrace8
Posted on April 23, 2012 at 11:09amSadly, I agree with you.
Report Post »I stand with Israel!!!
RepubliCorp
Posted on April 23, 2012 at 11:38am& code-pink loving Paulbots
Report Post »broken1
Posted on April 23, 2012 at 9:33pmHERSEY10
Remember that this is the same Muslim Brotherhood that was yucking it up with president jar jar obinks in the oval office not to long ago.
Report Post »AJAYW
Posted on April 23, 2012 at 11:00amGoing as planned by obama and hillary
Report Post »HorseCrazy
Posted on April 23, 2012 at 11:21amsure is. sad the evil coming from our government supporting the radical muslims.
Report Post »