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The Egyptian Government decided Sunday to halt talks on importing Israeli natural gas after an international arbitration court ordered Egypt to pay Israel a fine of about $1.76B, reported Bloomberg.
The Egyptian Government decided Sunday to halt talks on importing Israeli natural gas after an international arbitration court ordered Egypt to pay Israel a fine of about $1.76B, reported Bloomberg.
The fine was imposed following an arbitration process between East Mediterranean Gas Co., the Israel Electric Corporation and companies supplying Egyptian gas through a Sinai pipeline, which was repeatedly sabotaged.
Egypt will appeal the ruling by a panel at the Geneva-based International Chamber of Commerce within six weeks, Prime Minister Sherif Ismail said in an interview.
The Egyptian government also ordered Egyptian General Petroleum Corp. and Egyptian Natural Gas Holding Co. to stop grating permission to companies to import Israeli gas until the fate of the appeal on the ruling becomes clear, the oil ministry said in a statement.
Egyptian gas-trading company Dolphinus, is negotiating with partners in Israel’s offshore Leviathan field to buy as much as 4 billion cubic meters of natural gas a year for 10 to 15 years. It also signed a deal in March to import fuel from Israel’s Tamar field.
Two Egyptian gas companies will pay a sum of $1.76 billion dollars to the Israeli Electric Company (IEC), the International Chamber of Commerce ruled Sunday, for damages incurred as a result of failures to transfer gas from Egypt to Israel.
In 2011, Egyptian gas companies EGPC and EGAS stopped providing gas to Israel due to a series of pipeline bombings in the Sinai peninsula.
The explosions - the work of terror groups - caused the IEC to turn to more expensive fuels to make up for the loss, and increased the price of electricity to the general public by 30% to make up for costs.
Source:
http://www.israelnationalnews.com/News/News.aspx/204487?#.VmShw9IrLIU
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