Egypt will take the controversial decision to import natural gas from Israel if the price is suitable and the Spanish gas company, Union Fenosa, drops the legal actions against the Egyptian government, according to Petroleum Minister Sherif Ismail.
Speaking to the Wall Street Journal in an interview published on Tuesday, Ismail said that Egypt is facing the worst energy crisis in decades and that the government is open to accepting two pending gas deals, which would include importing gas from Israel’s giant offshore fields. “We will approve the gas deal if it meets our domestic demand, offers high value for the Egyptian economy and if the international arbitration with one of the companies is resolved,” Ismail said.
In April 2012, Egypt’s state-run gas company terminated a controversial natural gas deal with Israel.
Ismail also said that Union Fenosa, which is a joint venture between Spain's Gas Natural and Italy's Eni, would have to drop its legal actions against the Egyptian government. “We have been unofficially informed about the letters of intent signed by the international companies operating in Egypt, but they have to finalize their deals first before coming to us and they have not done it yet,” he added.
“We have no problem adjusting gas prices in the agreements we have, as long as this is economically viable for both parties involved,” he said.
Union Fenosa’s contract stipulated delivering up to 2.5 trillion cubic feet to Egypt, approximately 440 million cubic feet per day over 15 years via its Damietta plant. In 2013, it filed a complaint with the International Chamber of Commerce, alleging that Egypt failed to comply with the contract.
