Egypt reviews natural gas contracts

The Egyptian Petroleum Ministry is reviewing natural gas sale contracts in an effort to create a new policy that will better serve the interests of the sector and Egypt, said Petroleum Minister Mohamed Abdullah Ghorab.

Ghorab added that the ministry needs at least a month to decide which contracts need to be revised and which can be reconsidered later.

Ghorab said the international price of petroleum is determined by the Brent price chart.

The minister added that all concerned entities, including Jordan and Israel, are ready to engage in dialogue and review prices, adding that Israel had in 2008 agreed on an increase in the price of gas.

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.

The East Mediterranean Gas Company (EMG), which exports Egypt's natural gas, had said earlier it does not see a reason for a price increase in its contract with the Egyptian government.

The Egyptian government rejected EMG’s position, insisting it has the right to negotiate with the company and Israel for a higher selling price.

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

Translated from the Arabic Edition

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