Citi sees gas cutoff hurting Egypt more than Israel

According to Citi Capital Markets, state owned Egyptian Natural Gas Holding Company's (EGAS) cancellation of the gas supply and purchasing agreement with East Mediterranean Gas Company (EMG) will have little effect on Israel, Globes reported Tuesday.
It added that the agreement will likely hurt Egypt more than Israel.
Citi says that the disruptions in Egyptian gas deliveries in 2011 and the first quarter of 2012 have given Israel Electric Corporation (IEC) plenty of opportunity to find alternative sources of supply, particularly since the agreement’s suspension is unlikely to have come as a surprise.
It added, "Although the Israeli Ministry of Finance estimated that Egyptian gas suspensions have cost Israel NIS 15bn (1.7% GDP), we don’t think that the damage to Israel is particularly visible. And since Israel’s offshore gas field Tamar is due to begin production in April 2013, any further domestic shortfalls are likely to be relatively brief."