Egypt cancels natural gas deal with Israel, stakeholder says
Al-Masry Al-Youm – 22/04/2012
The head of the Egyptian Natural Gas Holding Company said Sunday it has terminated its contract to ship gas to Israel because of violations of contractual obligations, a decision Israel said overshadows the peace agreement between the two countries.
Ampal-American Israel Corporation, a partner in the East Mediterranean Gas Company (EMG), which operates the pipeline, said it had notified Egypt it was “terminating the gas and purchase agreement”.
The company said in a statement that the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company (EGAS) had notified them of the decision, adding that “EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal”.
Mohamed Shoeib, chairman of EGAS, told Al-Masry Al-Youm that EGAS is using its right to terminate the contract due to EMG’s breach of the gas supply agreement. He added that the decision was made after a thorough legal review by local and international legal experts.
A source within the petroleum ministry told Al-Masry Al-Youm that the dispute is purely commercial and has no other connotations.
The 2005 natural gas deal has become a symbol of tensions between Israel and Egypt since the uprising. For many Egyptians, it typifies the close relations the regime of deposed President Hosni Mubarak forged with Israel, despite wide hostility toward the Jewish state among his people.
Critics charge that Israel got the gas for bargain prices and that Mubarak cronies skimmed millions of dollars off the proceeds.
Egyptian militants have blown up the gas pipeline to Israel 14 times since the uprising.
Israel insists it is paying a fair price for the gas.
Companies invested in the Israeli-Egyptian venture have taken a hit from numerous explosions of the cross-border pipeline and are seeking compensation from the Egyptian government of billions of dollars.
The pipeline was financed by the National Egyptian Bank.
Ampal and two other companies have sought $8 billion in damages from Egypt for not safeguarding their investment.
Shoeib told the Associated Press said Israel has not paid for its gas in four months. Israeli Foreign Ministry spokesman Yigal Palmor denied that.
He told Egyptian TV the decision has been in place since Thursday.
The English website of the Israeli daily Haaretz on Sunday quoted sources close to EMG as saying “Egypt does not understand what it is doing. This move will bring back the country – politically and economically – by 30 years. This is a breach of the peace agreement with Israel.”
On Sunday, Israel Finance Minister Yuval Steinitz said the unilateral Egyptian announcement was of “great concern” politically and economically.
“This is a dangerous precedent that overshadows the peace agreements and the peaceful atmosphere between Israel and Egypt,” he said in a statement. Israel and Egypt signed a peace treaty in 1979, but relations have never been warm.
The Israeli side said the decision was “unlawful and in bad faith,” accusing the Egyptian side of failing to supply the gas quantities it is owed.
Israel insists it is paying a fair price for the gas. Israel’s electricity company has been warning of possible power shortages this summer, partly because of the unreliability of the natural gas supply from Egypt.
For the long term, Israel is developing its own natural gas fields off its Mediterranean coast and is expected to be self-sufficient in natural gas in a few years.
Hussein Salem, a close friend of Mubarak was among the shareholders of East Mediterranean, the joint Egyptian-Israeli company that carries the gas to Israel.
On the Israeli side, EMG sought international arbitration in October because of the Egyptian side’s failure to supply the quantity of gas stipulated in the contract — because of the frequent bombings.
Under the 2005 deal, the Cairo-based East Mediterranean Gas Co. sells 1.7 billion cubic meters of natural gas to the Israeli company at a price critics say is set at $1.50 per million British thermal units — a measure of energy.
The gas deal has been the subject of litigation in Egypt. An appellate court last year overturned a lower court ruling that would have halted gas exports to Israel. Opposition groups that filed the suit before the uprising claimed that Israel got the gas too cheaply under the 15-year fixed price deal between a private Egyptian company, partly owned by the government, and the state-run Israel Electric Corporation.
Ibrahim Yousri, a former Egyptian diplomat who had brought the issue to court, welcomed the decision announced Sunday.
“It has become a scandal bigger than the (ruling) military council can withstand,” he told the privately-owned channel CBC.
He said there are gas shortages in Egypt, and growing economic woes, further inflaming popular unrest. He called the business deal “treason” to national interests, adding, “This is a great political step.”
Ex-Palestinian prisoner: captivity in Israel, living in graves
Press TV – April 22, 2012
Interview with former Palestinian prisoner Abdulaziz Umar
“They (Palestinian prisoners) just live in graves and their families do not know anything about them; they’re not allowed to contact their families and they are deprived of everything. Some of them are suffering from handicaps and others are even suffering from psychological problems. Of course they spend all this long time in these dark cells under occupation without having any access to the external world.”
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UN: Israel displaced 67 Palestinian refugees over week
Ma’an – 22/04/2012

A boy surveys the rubble of his home in Azzun Atma near Qalqilia, demolished by
Israeli forces. (MaanImages/Khaleel Reash, File)
BETHLEHEM – Israel forcibly displaced 67 Palestinian refugees in East Jerusalem over the last week, UN agencies said Sunday.
On Wednesday, Israeli forces evicted two Palestinian families from their homes in East Jerusalem’s Beit Hanina. Jewish settlers moved into the homes the same day.
Also on Wednesday, Israeli authorities destroyed the homes of seven families in al-Khalayleh in East Jerusalem, displacing them for the third time in six months.
A day later, Israeli forces demolished and confiscated emergency tents provided to the families by humanitarian organizations, the Office for the Coordination of Humanitarian Affairs and the UN Relief and Works Agency said in a joint statement.
UNRWA’s director in the West Bank Felipe Sanchez said the forced evictions broke international law.
“We urge the Israeli authorities to find an immediate solution to enable the Palestinian population of the occupied West Bank, to lead a normal life, in full realization of their rights,” Sanchez said.
The head of OCHA’s local office Ramesh Rajasingham added: “More than 1,500 Palestinians have lost their homes as a result of demolitions and evictions since the beginning of 2011.
“Forced evictions and demolitions cause extensive human suffering, increase humanitarian needs and vulnerability.”
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S. Sudan Withdraws from Heglig, Damages Revealed
Al-Manar | April 22, 2012
South Sudan’s army has completed its withdrawal from Sudan’s main Heglig oil field, the military said Sunday, but condemned the north for bombing the area.
Juba seized the flashpoint oil hub on April 10, claiming that Khartoum was using Heglig as a base to attack the South’s oil-producing Unity State.
Although South Sudan disputes it, Heglig is internationally regarded as part of Sudan.
The South’s Sudanese Peoples Liberation Army (SPLA) “completed its withdrawal from Heglig yesterday,” the South’s military spokesman Philip Aguer told AFP.
However, Sudan’s presidential assistant, Nafie Ali Nafie, has accused South Sudan’s government of deceiving its people by saying that its army withdrew from Heglig, Sudan Tribune reported.
Addressing a mobilization rally of Sufi groups in the capital Khartoum on Saturday, Nafie claimed that Juba had in fact pleaded with international mediators to stop Khartoum from shelling SPLA troops inside Heglig.
UN chief Ban Ki-Moon branded Juba’s 10-day occupation of the region illegal and US President Barack Obama has said the long-time rivals must negotiate to avoid further military escalation along their contested and volatile border.
For his part, The Sudanese First Vice President Ali Osman Taha ruled out quick return to negotiations with S. Sudan, suggesting that negotiations with the South are pointless.
In an interview with Blue Nile TV, Taha also accused Juba of launching economic war on Sudan when SPLA damaged the operating system software of Heglig oil facilities and set the main controls of the plants on fire. The details and scope of the destruction will be revealed in the coming hours, he added.
Sudan state TV aired footage from inside Heglig showing major destruction in the town while oil facilities were still burning and efforts were made to put out the fires.
The Washington-based Satellite Sentinel Project (SSP) said in a statement today that new satellite imagery revealed that a key part of the pipeline infrastructure was destroyed.
“The damage appears to be so severe, and in such a critical part of the oil infrastructure, that it would likely stop oil flow in the area,” SSP’s statement read.
The Heglig violence was the worst since South Sudan won independence in July after a 1983-2005 civil war in which about two million people died.
Tensions have gradually mounted over the disputed border and other unresolved issues.
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