A man carries a cooking gas cylinder at a selling depot in Cairo. Egypt exported natural gas to Israel until it cancelled the deal in 2012 as its wells became depleted and new exploration slowed.

Bloomberg
Jerusalem


Israel hopes that its “close ties” with Egypt will enable talks on gas exports to restart, Energy Minister Yuval Steinitz said, following an Egyptian decision to halt negotiations. Israel is also planning to advance exports to other markets including Jordan, Turkey and Western Europe, he said.
“The State of Israel assigns great importance to its security and energy ties with Egypt in their entirety, and hopes that due to its close bilateral ties, it will be possible to continue to move forward on the gas issue soon,” Steinitz said in a text message. Israel must develop its offshore gas fields quickly to achieve energy security, he said.
The Egyptian government ordered its oil and gas arms to freeze talks on importing Israeli natural gas after an international arbitration court ruled that the Arab world’s most populous nation must pay a fine of almost $1.73bn to Israel. The fine was imposed after arbitration between East Mediterranean Gas Co, Israel Electric Corp and companies supplying Egyptian gas through a Sinai pipeline that was repeatedly sabotaged.
Partners in Israel’s offshore Leviathan gas field said in a filing to the Tel Aviv bourse that talks are continuing with private Egyptian firms which are not part of the arbitration process with Egypt’s state-run gas companies.
Dolphinus, an Egyptian gas-trading company, is negotiating with partners in Israel’s offshore Leviathan field to buy as much as 4bn cubic meters of natural gas a year for 10 to 15 years. It also signed a deal in March to import fuel from Israel’s Tamar field.
Egypt exported natural gas to Israel until it cancelled the deal in 2012 as its wells became depleted and new exploration slowed. It has said that any gas import deal with Israel should include a resolution to international arbitration cases.
Egypt’s decision to suspend the talks may be temporary, Amos Gilad, a senior Defence Ministry official, said in an Israel Radio interview. He also emphasized Israel’s ties with the country as well as Egypt’s role as a stabilising influence in the region.
“You have to look at the entire picture,” Gilad said. “There is a whole set of interests.”