Sources inform “Globes” that in a recent telephone conversation, Prime Minister Ariel Sharon and Egyptian President Hosni Mubarak agreed to promote sales of Egyptian natural gas to Israel.
The natural gas project will be carried out through Eastern Mediterranean Gas (EMG), owned by the Egyptian government 75% and Merhav, owned by Joseph (Yossi) Maiman 25%. At the price of the gas purchased by the Israel Electric Corporation, the project is worth an estimated $2 billion.
Mubarak has delayed this and other Egyptian-Israeli projects in recent years for political reasons, mostly having to do with Israeli-Palestinian relations.
At a meeting at the end of last week in his office, Sharon explained why he wanted Israel to buy gas from Egypt, instead of the joint Palestinian Authority-British Gas company. He said, “The current state of relations with Egypt makes it possible to gain the consent of the Egyptian government for an agreement. Mubarak is very familiar with the project. I spoke with him on the subject, and he wants to go ahead with it.
”In my opinion, the time is ripe. That won’t always be the case. Now is the right time for closer ties. Achieving closer relations with Egypt is very important for Israel for strategic reasons, among others.
”We’re striving all over the world to stop the flow of money to the terrorist organizations. If we decide to buy Palestinian gas, the money will be used to support Hamas, Islamic Jihad, and armed Fatah forces. We have no control over this matter.”
Published by Globes [online] - www.globes.co.il - on February 18, 2004