Egypt reached a $ 500 million settlement with the Israel Electricity Authority over a suspended natural gas deal.
According to Reuters, the Egyptian General Petroleum Corporation (EGPC) said in a statement that both parties have reached a cooperative agreement to resolve the dispute.
Last April, Israel Energy Minister Yuval Steinitz said that an arbitration proceeding could be settled with Egypt over a natural gas deal that has been suspended.
“I think a final understanding already exists and It’s probably a matter of a few months but, it requires the approval of the Israel Electric Corporation (IEC) and maybe someone from the Egyptian side,” Steinitz told Reuters in an interview.
He noted that the dispute does not stop Israel from expanding relations with the Egyptian side in the energy sectors, adding that the arbitration has nothing to do with Israeli-Egyptian relations.
In 2015, the International Chamber of Commerce (ICC) ordered Egypt to pay $ 1.8 billion in compensation to the state-owned IEC after a deal to export gas through a pipeline to Israel was dismissed.
However, Egypt has challenged the judgment, saying that it could disrupt trade agreements. No final deal has been reached since then until the IEC said that it has reached an agreement, in which Egypt would pay $ 500 million over eight and a half years’ installments.
According to Reuters, Israel views Egypt as an important market for the export of newly discovered gas and is expected to start implementing a historic agreement worth $ 15 billion dollars this year.