Report: Israel, Egypt to launch gas talks

Egyptian paper says official negotiations on gas prices to begin in Cairo this month; both sides deny

Reuters | Published: 05.17.11, 14:55

Egyptian newspaper al-Masry al-Youm on Monday quoted new Oil Minister Abdullah Ghorab as saying that he did not negotiate gas prices with the Israeli delegation which visited Cairo last week, but that the talks would be launched this month.

The newspaper reported last week that an Israeli delegation arrived in Cairo to discuss several issues with Egyptian officials, including maintaining the current price of gas exported to Israel.

Ghorab added that official negotiations with Israel on the gas would be launched in Cairo this month, and that the gas deal would be looked into as well. "It's still too early to rush into conclusions," he explained.

The negotiations are being held between the Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company (EGAS), and the East Mediterranean Gas Company (EMG), which supplies the gas to Israel.

An official source in the Egyptian Ministry Of Petroleum told the newspaper that Egypt had sent official memos to EGAS and to the Israelis, calling for a review of the gas prices as early as this month, although the deal signed between the companies and countries in 2009 states that the prices would only be reviewed in 2013.

Israel's National Infrastructure Ministry said in response, "No negotiations are being held with Egypt on this matter."

An EMG source denied the report as well, claiming that Jewish state was not negotiating the price.