Israel and Egypt negotiates back on natural gas dispute

Negotiation on natural gas resources between Israel and Egypt are restarting back after Egyptian public companies were obliged to give compensation to an Israeli electricity provider.

Egyptian natural gas provider paid 2 billion dollars fine to an Israeli electricity provider for contractual failure. After Bloomberg media, Tarek El Molla, the Egyptian Minister in charge of the energy sector who is seeking for an agreement, an Israeli – Egyptian deal could be ensured only once the fine would be reevaluated. On his side, Yuval Steinitz, the Israeli Ministry of Energy declared that negotiations were still up to date.

Israel is looking for exploitation development in the coastal zone and sees Egypt as a serious gas provider competitor. The Leviathan field recently discovered by Israel made the geostrategic difference. An agreement could allow Israel to operate in Egypt to extract and invest in the energy sector.

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