Tuesday, June 10, 2008

Egyptian gas deal with Israel

Why am I still shocked when I see things like this on the news? For transcription of the main points of interest in the video, see below.

Amr El-Kahky, Al-Jazeera reporter: "Egpyt is to provide Israel with 100 to 150 million cubic feet of gas per day at a favourable price that is said to be $2 per cubic foot, a price well below the market benchmark of $14. The contract runs for 15 years and is renewable. The gas should reach the Israeli port of Ashkelon through northern Sinai through a hundred kilometre long pipeline under the Mediterranean. Egypt has recently started exporting gas to Jordan through another pipeline. Syria waits its turn on the completion of building their pipeline. The deals with those countries allow Egypt to charge the market rate and make a reasonable profit but the deal with Israel does not."

Tharwat Shalabi, oil reporter: "Egypt bowed under Israeli pressure to accept exporting gas at this low price but it is rejected by the public. Yet Egypt is comitted to providing Israel with energy under the Camp David peace accord. It stopped exporting oil and now has to replace it with gas."

The man who made the deal is oil minister, Sameh Fahmi and it is said that, "He has been keeping quiet about the details of the Israeli arrangement and has refused any interviews on the subject. Critics say the decision to go ahead came from the president's office; now the government is trying to renegotiate the price but it will still be well below the world benchmark"

Yehya Al-Gamal: "Exporting this energy only strengthens their military machine and participates in supressing the Palestinian people. It's not about the price of gas, it's whether we should export it to them in the first place."


Anonymous said...

Some must have been getting kick backs for that deal, either that or they have a really, really brown nose (no pun intended!).

American Muslima Writer said...

Should I dare comment?
Nawww...too controversial....
Good post though dear and thanks for the info