National Infrastructure Minister Binyamin Ben-Eliezer is expected to sign the political side of a USD 2.5 billion (NIS 11.4 billion) deal to import natural gas from Egypt.
According to Ben-Eliezer, the deal is one of the most important in Israel’s history, and would benefit the entire energy market.
“Thie deal will (also) strengthen our peace treaty with Egypt,” he said.
Second-largest supplier
In February, Ben-Eliezer approved a memorandum of understanding between Israel and Egypt on the issue of importing natural gas, and appointed ministry staff to begin drafting a contract.
Israel Electric Company signed the initial agreement with EMG, a natural gas cooperative jointly owned by Israeli businessman Yossi Maimon, the Egyptian government and several Egyptian businessmen. The deal is worth USD 2.5 billion (NIS 11.4 billion), and would make EMG the second-largest supplier of natural gas to Israel Electric.
The political agreement is meant to complete an economic deal between the companies. Among other items, the deal outlines path the gas pipe would take from Egypt to Israel, and also guidelines for how each country would collect taxes on the profits.
