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Egypt to markedly raise gas prices in new deal with Israel

By REUTERS
LAST UPDATED: 10/04/2011 11:09
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Egyptian petroleum minister tells 'Al Ahram' price increases will right the wrong of below market prices seen during Mubarak era.

Gas pipeline explosion [illustrative]
Gas pipeline explosion [illustrative] Photo: REUTERS
CAIRO - Egypt will soon finish drafting a new contract for gas exports to its neighbor Israel that includes a big increase in prices, a newspaper cited the petroleum minister as saying on Tuesday.

Gas supplies to Israel have been disrupted by a series of attacks on the pipeline in the Sinai border region by assailants believed to oppose the sale of gas to the Jewish state.

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The attacks became more frequent and supplies were halted after the overthrow of Egypt's President Hosni Mubarak in February.

Egypt's army-backed government, under popular pressure to toughen its stance towards Israel, has sought to renegotiate the terms of the gas deal, complaining that the previous agreement signed under Mubarak fixed prices below market rates.

"The final draft related to amending the prices for exporting natural gas to Israel will be completed soon. It will see a big increase in the price," newspaper Al Ahram reported, citing Petroleum Minister Abdullah Ghorab.

He said gas supplies to Israel were still suspended after the latest attack on the pipeline in Sinai in late September, Al Ahram reported.

Egypt is also seeking to renegotiate prices of gas exports to Jordan, which have also been disrupted by the attacks.
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