TEL AVIV (JTA) – Egypt might import natural gas from Israel, according to a senior Egyptian government official.
Egypt would import the natural gas, drilled in the Mediterranean Sea off of Israel’s coast, if its price is low enough, and if one of the drilling companies drops a legal action against the Egyptian government, according to the Wall Street Journal.
“We would approve the gas deal if it will meet domestic demand, offer high value for the Egyptian economy and if the international arbitration with one of the companies is resolved,” Egyptian Oil Minister Sherif Ismail told the Journal.
The legal action was brought by a joint Italian-Spanish gas venture, which has filed an international complaint against Egypt over breach of contract. The venture, Union Fenosa Gas, signed a 15-year contract last May to sell Egypt 2.5 billion cubic feet of gas from Israel’s offshore field. British energy company BG Group has also signed a 15-year contract to send 7 billion cubic feet of Israel’s gas to Egypt.
Jordan has also signed a $15 billion 15-year letter of intent to import Israeli natural gas.