Gov. Denies Importing Gas to Cover Domestic Consumption

Egypt's Ministry of Petroleum and Mineral Resources denied that the country imported large quantities of natural gas to cover domestic consumption.

In its response to the Cabinet Media Center, the Ministry stated that Egypt has achieved self-sufficiency in natural gas and started exporting activities, denying  any rumors concerning this fact.

The ministry confirmed that the Egyptian private sector contracts are part of Egypt's project to transform the country into a regional energy hub, adding that gas will be liquefied in Egyptian factories and exported to Europe.

Minister of Petroleum Tareq Al-Mulla had confirmed that the Israeli gas exported to Egypt recently was only in a commercial framework, adding that Israeli gas will go through a liquefying process before being exported to the EU.

Al-Mulla pointed out that Egypt has achieved self-sufficiency in natural gas since October 2018, and gas is being pumped from Israel, starting in 15 Jan., to make Egypt an energy hub for gas trading and circulation for countries including Jordan, and Cyprus.

Last June, Egypt reached a $ 500 million settlement with the Israel Electricity Authority over the suspended 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.

the Israel Energy Minister Yuval Steinitz said that an arbitration proceeding could be settled with Egypt over a deal that has been suspended.

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.