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The Arish–Ashkelon pipeline is a 100 kilometres (62 mi) submarine gas pipeline connecting the Arab Gas Pipeline with Israel. Although it is not officially a part of the Arab Gas Pipeline project, it branches off from the same pipeline in Egypt. The pipeline is built and operated by the East Mediterranean Gas Company (EMG), a joint company of Mediterranean Gas Pipeline Ltd (28%), the Israeli company Merhav (25%), PTT (25%), EMI-EGI LP (12%), and Egyptian General Petroleum Corporation (10%).^[1]

History

The pipeline became operational in February 2008, at a cost of $180–$550 million (the exact figure is disputed).^[2] Initially Egypt and Israel had agreed to supply through this pipeline 1.7 billion cubic metres (60 billion cubic feet) of natural gas per year for use by the Israel Electric Corporation.^[3] This has since been raised to 2.1 billion cubic metres (74 billion cubic feet) per year to be delivered through the year 2028. In addition, by late 2009, EMG had signed contracts to supply through the pipeline additional 2 billion cubic metres (71 billion cubic feet) per year to private electricity generators and various industrial concerns in Israel and negotiations with other potential buyers were ongoing. In 2010, the pipeline is supplying approximately half of the natural gas consumed in Israel, with the other half being supplied from domestic resources. The total physical capacity of the pipeline is 9 billion cubic metres (320 billion cubic feet) per year and agreements between the two nations provide a framework for the purchase of up to 7.5 billion cubic metres (260 billion cubic feet) per year of Egyptian gas by Israeli entities, making Israel one of Egypt's most important natural gas export markets.

In 2010 some Egyptian activists appealed for a legal provision against governmental authorities to stop gas flow to Israel according to the obscure contract and very low price compared to the global rates, however the provision was denied by Mubarak regime for unknown reasons. In 2011, after the Egyptian revolution against Mubarak regime, many Egyptians called for stopping the gas project with Israel due to low prices.^{[citation needed]} After a fifth bombing of the pipeline, flow had to be stopped for repair.^[4]^[5]

2012 cancellation

Following the removal of Hosni Mubarak as head of state, and a perceived souring of ties between the two states, the standing agreement fell into disarray. According to Mohamed Shoeb, the head of the state-owned EGAS, the "decision we took was economic and not politically motivated. We canceled the gas agreement with Israel because they have failed to meet payment deadlines in recent months". Israeli Prime Minister Benjamin Netanyahu also said that according to him the cancellation was not "something that is born out of political developments". However, Shaul Mofaz said that the cancellation was "a new low in the relations between the countries and a clear violation of the peace treaty".^[6]

References

^ "PTT buys 25% of East Mediterranean Gas Co". Oil & Gas Journal. PennWell Corporation. 7 December 2007. Retrieved 5 February 2011.
^ Barkat, Amiram (27 September 2011). "IEC may seek partial ownership of Egyptian pipeline". Globes. Retrieved 2 October 2011.
^ Shirkani, Nassir (10 March 2008). "Egyptian gas flows to Israel". Upstream Online. NHST Media Group. Retrieved 10 March 2008.
^ "Egypt's Dilemma After Israel Attacks". Business Insider. Stratfor. 19 August 2011. Retrieved 20 August 2011. Such groups, whose ability to operate in this area depends heavily on cooperation from local Bedouins, have been suspected of responsibility for attacks on police stations and patrols as well as most if not all of five recent successful attacks on the El Arish natural gas pipeline that runs from Egypt to Israel.
^ Buck, Tobias; Saleh, Heba (18 August 2011). "Seventeen killed in Israel attacks". Financial Times. Jerusalem, Cairo. Retrieved 20 August 2011. In the past six months, suspected Islamist militants in the Sinai have blown up a pipeline carrying natural gas to Israel five times.
^ Sanders, Edmund (23 April 2012). "Egypt-Israel natural gas deal revoked for economic reasons". Los Angeles Times.

[ogj071207-1] "PTT buys 25% of East Mediterranean Gas Co". Oil & Gas Journal. PennWell Corporation. 7 December 2007. Retrieved 5 February 2011.

[globes-iecbuy-2] Barkat, Amiram (27 September 2011). "IEC may seek partial ownership of Egyptian pipeline". Globes. Retrieved 2 October 2011.

[upstream-3] Shirkani, Nassir (10 March 2008). "Egyptian gas flows to Israel". Upstream Online. NHST Media Group. Retrieved 10 March 2008.

[4] "Egypt's Dilemma After Israel Attacks". Business Insider. Stratfor. 19 August 2011. Retrieved 20 August 2011. Such groups, whose ability to operate in this area depends heavily on cooperation from local Bedouins, have been suspected of responsibility for attacks on police stations and patrols as well as most if not all of five recent successful attacks on the El Arish natural gas pipeline that runs from Egypt to Israel.

[5] Buck, Tobias; Saleh, Heba (18 August 2011). "Seventeen killed in Israel attacks". Financial Times. Jerusalem, Cairo. Retrieved 20 August 2011. In the past six months, suspected Islamist militants in the Sinai have blown up a pipeline carrying natural gas to Israel five times.

[6] Sanders, Edmund (23 April 2012). "Egypt-Israel natural gas deal revoked for economic reasons". Los Angeles Times.

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