Egypt informed Israel Sunday afternoon that it is unilaterally cancelling the agreement of supply of gas to Israel. The announcement was made to EMG, the firm that receives the gas from Egypt, and reported on Channel 2 news.
The peace treaty with Egypt includes a financial appendix, in which Egypt agrees to supply Israel with oil. Several years ago the appendix was changed so that the oil was replaced by gas. The treaty commits Egypt to supply Israel with the amount of gas it requires for a specified period, in exchange for payment.
Egypt's unilateral abrogation of the treaty causes "tremendous financial damage" to Israel, and to the Amgas and Ampal companies, according to Channel 2. However, the primary damage is diplomatic, reporter Amnon Abramovich said.
The pipeline carrying gas from Egypt to Israel was blown up 14 times since the Mubarak regime was toppled in February 2011.
Bee's Note: Hmm! I can still hear the Obama White House administration demanding "Mubarak step down" ... can still visualize the Muslim Brotherhood being wined and dined in Washington, DC a few weeks ago - and can't imagine how ignorant this administration is in allowing the MB to gain legitimacy in the eyes of the world with that "warm" greeting to the MB terrorists. If one of our "officials" say "they didn't see this coming", I suggest that individual be fired on the spot! Egypt is reaping the fruit (with a little help from the U.S.) since Mubaak's regime was toppled and Congress needs to immediately stop the flow of all aid to Egypt's government, which consists of its military, at the moment.
Egypt is claiming that the treaties remain and blame the private companies for breaking the agreements - yeah, right! The agreements were made between Israel-Egypt, not private companies! The warning signs were watching the gas pipes blow up 14 times! Everyone could see what was coming, except for our present administration.