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Tuesday, 17 December 2019

Israeli gov’t green-lights gas exports to Egypt

Israel green-lights gas exports to Egypt: Israeli Energy Minister Yuval Steinitz yesterday gave the all-clear for Israel to begin exporting natural gas to Egypt, paving the way for the first gas shipments to arrive next month, according to the Jerusalem Post. Steinitz called the USD 19.5 bn gas agreement “the most significant economic cooperation between Israel and Egypt since the [Camp David] peace agreement” after signing off on several antitrust regulatory procedures. The agreement will see Israel export 85.3 bn cubic meters (bcm) over the next 15 years, with 60 bcm coming from the Leviathan gas field and 25.3 bcm from the Tamar field.

Seven-year gas dispute finally over as Israel accepts USD 500 mn settlement: The Israeli Electricity Authority (IEA) has accepted a USD 500 mn settlement from Egyptian gas companies for halting natural gas shipments in 2012, according to Jewish Press. The payments will be made by the Egyptian Natural Gas company (EGAS) and the Egyptian General Petroleum Corporation (EGPC) payable within the next eight-and-a-half years. The IEA will drop all other claims resulting from the 2015 arbitration. Egypt was originally ordered by the International Chamber of Commerce to pay the Israel Electric Corporation USD 1.76 bn, but later negotiated it down to USD 500 mn after making a reduced settlement a key condition for accepting a gas agreement with Israel.

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