Company exporting gas to Israel sees no reason to amend contract with Egypt govt

A company that exports Egyptian natural gas does not see why its contract with the Egyptian government should be changed to raise the price of gas, an official from the company said.

The Egyptian government has rejected the position of East Mediterranean Gas Company (EMG), which exports natural gas to Israel and other Middle East countries. It affirmed that the government has the right to negotiate with the company and Israel for a higher selling price.

Egypt supplies Israel with gas via through EMG, an Egyptian-Israeli consortium. According to an agreement signed in 2005, Egypt supplies Israel with 1.7 million cubic meters of gas annually for 15 years.

Egyptian Petroleum Minister Mohamed Ghorab said the Egyptian government will insist on negotiations to amend gas agreements, particularly the one signed with Israel, to generate the highest possible revenues for Egypt.

Ghorab said popular and government pressure will bolster the Petroleum Ministry’s negotiating position, but added that he cannot give definite results about the success or failure of these negotiations.

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