Thursday, May 08, 2008
No Big Deal
Egypt and Israel on Thursday June 30 2005, signed a $2.5 billion preliminary agreement on sales of Egyptian natural gas to Israel, underscoring improved ties between the two countries. Here are some details:
- The agreement stipulates Egypt will supply 1.7 billion cubic meters, or 60 billion cubic feet, of natural gas a year via an undersea pipeline from the north Egyptian town of el-Arish to the southern Israeli coastal city of Ashkelon.
- Twenty percent of Israeli power plants operate by Egyptian natural gas supplies. - The price is 1/10th of the global markets, whereas 9 power stations in Egypt have stopped operation due to steeping fuel prices.