Egypt, Israel sign historic gas deal

BenReilly · Jul 2, 2005

The actual agreement is due to be signed in August between the Israeli Electric Company (IEC) and the Israeli-Egyptian consortium East Mediterranean Gas, which is jointly owned by Egyptian General Petroleum Corp. and the private Israeli company Merhav.

According to the terms of the memorandum of understanding signed today, Egypt will supply 1.7 billion cubic meters of natural gas per year through a maritime pipeline to the southern Israeli town of Ashkelon.

Israeli and Egyptian sources said that the first deliveries of the 2.5-billion-dollar project are expected in the first quarter of 2006. The deal will be effective for 15 years.

Ben Eliezer stressed “the huge political and strategic importance of this understanding on the supply of Egyptian gas.

“It is an opportunity to strengthen economic relations between our two countries and contribute to the stability of the region,” he said.
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http://www.aljazeera.com/me.asp?service_ID=8721

ratdog · Jul 2, 2005

And here I was expecting to find that they'd bought out whoever makes Tums.