Israeli-Egyptian Gas Agreement

Egypt compensates Israel by $ half a billion

Gas pipelines

Gas pipelines

Print +A -A

Gaza Post-Egypt/ Israel

Egypt and Israel signed on Sunday an agreement to reduce the compensations that Cairo was supposed to pay for Israel from 1.8 billion dollars into half billion dollars, following the gas cut to Tel Aviv.

The Egyptian Authority for Oil and the Egyptian Natural Gas Holding Company said in a statement issued yesterday evening that the agreement provides that Egypt shall pay the amount by installment throughout eight years and a half.

It was reported that Cairo will pay $ 60 million in advance and $ 40 million after six months from the day when the agreement comes into force. While the rest of the amount will be paid by $ 25 million every six months.

Earlier, the International Chamber of Commerce (ICC) has ordered Egypt to pay $ 1.8 billion in compensation for the Israeli Electricity Company due to the cut of gas supplies.

The Israeli Company "Delek" signed in February 2018 an agreement with "Dolphinous" company in Egypt to supply 64 billion cubic meters of gas in return of 15 billion dollars over a period of 10 years.  

Egyptian gas supplies to Israel were cut off more than six years ago following the attacks on the carrier gas pipeline in the Sinai Peninsula.