Eastern Mediterranean Gas (EMG), the company supplying Israel with natural gas from Egypt, owes the Egyptian Natural Gas Holding Company (EGAS) LE658 million, an official source at the Egyptian Ministry of Petroleum said.
The source told Al-Masry Al-Youm that the amount owed resulted from an increase in the prices of supplies exported between January 2008 and September 2009. He said the increase was based on a price review signed with EMG in June 2009 and that the company is obligated to pay the LE658 million by September.
The Petroleum Ministry and EGAS have refused to reveal details of Egypt's gas supply contract with Israel because they say the 2005 deal stipulated that rates be classified.
Officials at EMG have said Egypt earns a net profit of US$3.06 for each million British thermal unit.
Minister of Petroleum Abdullah Ghorab said that the money EMG owes is legally separate from current negotiations with the company, through which Egypt seeks to reprice its gas exports to Israel.
Ghorab told Al-Masry Al-Youm that Egypt is standing firm on bringing gas export prices in line with international rates.
Opponents of the Egypt-Israel gas export deal allege the prices quoted are much lower than international rates. Deposed President Hosni Mubarak and businessman Hussein Salem face corruption and profiteering charges related to the deal.
In June, Jordan agreed to pay more for gas imports from Egypt when the contract between the two countries was renegotiated. Negotiations between Egypt and Israel are ongoing.
Translated from the Arabic Edition
