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Middle east

Israel urges Egypt to reconsider cancelled gas deal

Text by News Wires

Latest update : 2012-04-23

Israel on Monday urged Egypt to reinstate a crucial natural gas supply deal that was cancelled over allegations that Israel had not paid its bills. Israel says the cancellation will cause an energy shortage and harm bilateral relations.

AP - Israel’s energy minister is urging Egypt to reverse its decision to stop supplying Israel with natural gas.

Uzi Landau says the canceled deal will not only exacerbate power shortages this summer but also disrupt an already shaky peace treaty between the two countries.

Egypt’s national gas company announced the decision late Sunday, saying Israel had not paid its bills.

Israel gets about 40 percent of its natural gas from Egypt. In the past year, saboteurs have repeatedly blown up the pipeline, disrupting the supply to Israel.

Landau says the gas deal was a cornerstone of Israel’s peace treaty with Egypt. He expects electricity shortages this summer, partly due to the lack of Egyptian gas.

Israel is ramping up production on offshore oil fields to make up for the shortage.

Date created : 2012-04-23

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