Egypt may import natural gas from Israel

Jordan has also signed a $15 billion 15-year letter of intent to import resource from Jewish state

By JTA 5 March 2015, 4:33 pm

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An aerial view of an Israeli offshore gas rig (Albatross Aerial photography/Noble Energy/Flash90/File)

Egypt could 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, according to Haaretz.

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.