Categories: Business

Egypt to pay $500m to Israel over gas cuts

Monitoring Desk

CAIRO: Egypt has signed a $500-million settlement agreement with state-owned Israel Electric Corporation over the suspension of natural gas deliveries to Israel.

The amount will be paid over a period of eight and a half years, the Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas (EGAS) said in a statement.

Cairo suspended natural gas deliveries to Israel in 2012 after militant attacks on the pipeline connecting the two countries.  Israel Electric sued the Egyptian government over the halt of gas exports.

In 2015, the International Chamber of Commerce ordered Cairo to pay a fine of $1.8 billion in compensation, but the Egyptian government appealed the decision and began talks for reaching a settlement deal.

Last year, Israel’s Delek Drilling and its partner Noble Energy signed a deal to export $15 billion in natural gas to a private company in Egypt.

Egypt was the first Arab country to recognize Israel following the signing of a peace treaty in 1979. (AA)

The Frontier Post

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