The Cabinet has almost reached final compromise on the international arbitration lawsuits filed against Egypt due to previous decisions on suspending the natural gas to Israel via the Egyptian pipeline and the East Mediterranean Gas Company owned by businessman Hussein Salem and Israeli partners, according to an informed governmental source.
Speaking to Al-Masry Al-Youm, the source pointed to a positive outcome in negotiations with the British Gas group (BG) and the Spanish firm Union Fenosa Gas to cede an arbitration lawsuit at which the two companies demand US$8 billion for the low governmental supply to their liquefaction stations in Idko and Damietta.
The source added that Petroleum Minister Sherif Ismail conducted a series of talks with several parties over an agreement that stipulates ceding international arbitration lawsuits.
Government earlier approved exporting gas to Israel for 20 years before it suspended it in 2012 upon several terrorist attacks against the pipeline, which caused the East Mediterranean Gas Company resort to arbitration.
Compromise in the gas lawsuits could lead to another compromise with Salem, the source said, adding that having an agreement between Egypt and Cyprus over importing the gas from Cyprus will lead to settling the dispute with Union Fenosa and BG.
Edited translation from Al-Masry Al-Youm
