6 May 2012
Egypt's Revocation of the Natural Gas Agreement with Israel
On 22 April 2012, the national Egyptian gas companies, EGAS and EGPC, announced the revocation of the agreement to supply natural gas to Israel. The supply of natural gas was one of the few concrete manifestations of economic ties between Egypt and Israel. Though the revocation of the agreement was made at the highest political levels, the author writes that both countries are trying to downplay the political significance of the move and claim that it stems from a commercial dispute. The author provides several implications of the revocation for Israel, including significant political damage, and the need to accelerate processes to develop the new gas fields in the Mediterranean.
© 2012 Institute for National Security Studies (INSS)