• 310 days Will The ECB Continue To Hike Rates?
  • 310 days Forbes: Aramco Remains Largest Company In The Middle East
  • 312 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 712 days Could Crypto Overtake Traditional Investment?
  • 716 days Americans Still Quitting Jobs At Record Pace
  • 718 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 721 days Is The Dollar Too Strong?
  • 722 days Big Tech Disappoints Investors on Earnings Calls
  • 723 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 724 days China Is Quietly Trying To Distance Itself From Russia
  • 725 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 729 days Crypto Investors Won Big In 2021
  • 729 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 730 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 732 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 732 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 736 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 736 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 737 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 739 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Markets
  3. Other

Egyptian-Israeli Natural Gas Contract Casualty of Arab Spring?

As last year's Arab spring has slowly roiled eastwards from Tunisia to the eastern Mediterranean, the two most concerned governments are the U.S. and Israel, that are watching their carefully constructed defense alignments crumble to the populist forces unleashed.

After decades of repression, the Arab "street" is finding its democratic voice, which is rejecting the cozy decades-long security and energy arrangements carefully stitched together by Washington to ensure Israeli security. In the "brave new world" emerging, it is increasingly obvious that the post-Arab Spring governments, inhaling Western democratic ideals relentlessly promoted as the way forward, have a radically different agenda than those proposed by Washington and Tel Aviv.

Viewing social upheavals decades ago, in 1973 Henry Kissinger, President Nixon's Secretary of State commented prior to the CIA overthrow of the democratically elected government of Chilean socialist President Salvadore Allende "I don't see why we need to stand by and watch a country go communist due to the irresponsibility of its people."

Now the Arab spring seems to be embracing two policies anathema to Washington - a rejection by Egypt of its ties to Israel, carefully fostered by assassinated Egyptian President Anwar Sadat and his successor, Hosni Mubarak, Egypt's President until 13 months ago, when the Arab spring populist uprising unseated him and his administration's cozy energy arrangements with Israel, which provided Tel Aviv with 2/5 of its natural gas import requirement needs.

In a development largely overlooked in the Western press, in an evening session on 12 March the Egyptian People's Assembly demanded the deportation of the Israeli ambassador Yaakov Amitai, and the withdrawal of the Egyptian ambassador from Tel Aviv.

And oh, the nullification of the country's natural gas sales to Israel.
The People's Assembly vote was unanimous.

Why?

As a protest against Israel's recent campaign against the Palestinians in the Gaza Strip, which the Egyptian Assembly considers a flagrant violation of human rights.

Newly founded Egyptian democratic handwriting on the wall? Assembly speaker Saad al-Katatny asked a special parliamentary committee to follow up the implementation of the demands with the government, releasing a People's Assembly statement commenting, "Egypt after the revolution will never be a friend of the Zionist entity, the first enemy of Egypt and the Arab nation," demanding that the Egyptian government review all its relations and agreements with that "enemy" along with calling for stopping Egyptian natural gas exports to Israel.

So, how serious a threat?

Egypt is the Arab's world's largest country and has played a central role in Middle Eastern politics for decades. In 1979 Egyptian President Anwar Sadat made peace with Israel under terms of the Camp David agreement. Sadat's initiative led to Egypt being expelled from the Arab League for a decade, and in 1981 Sadat was assassinated by Islamic extremists, to be succeeded by Hosni Mubarak, who ruled Egypt until February of last year, when the "Arab Spring" swept him from power.

The tenuous peace established by the Camp David accords, liberally lubricated by massive U.S. aid, endured until February 2011, and quite aside from marginalizing the Arab world's military superpower, further paid off Israel with the opening in 2005 of Egypt's $500 million East Mediterranean Gas Company Ltd. (EMG) pipeline, which supplied 40 percent of Israel's natural gas through an underwater pipeline from the Egyptian city of El Arish on the northern Mediterranean coast to the Israeli port of Ashkelon.

The East Mediterranean Gas Company Ltd. was established in 2000 and is jointly owned by Egyptian General Petroleum Corp., which owns 68.4 percent of the venture, and its 170 million cubic feet of gas per day of exports and met nearly half of Israel's natural gas needs until the Arab Spring swept Cairo a year ago.

The latest Egyptian National Assembly vote puts that at risk.

But it's not as if Tel Aviv has been unaware of the consequences of Cairo's "Spring," as the East Mediterranean Gas Company Ltd. Pipeline has been bombed 13 times since Mubarak's overthrow, most recently on 5 March, and remains closed at present.

The National Assembly's motion at present remains largely symbolic because only Egypt's current government, the Military Council, can sign off on such decisions.

That said, the vote is a startling manifestation of the feelings of the Egyptian people, and, as such, can hardly be ignored in the Middle East's rising embrace of democratic values, as assiduously promoted by Washington. The only problem for the U.S. is that Egyptian voters had a somewhat different perception of what being able to choose in their foreign relations entailed, and after decades of Mubarak's rule, have a somewhat different view of the future from their Washington 'advisers."

Egyptian voters have resoundingly rejected Washington's exhortations and accordingly, Israeli consumers had better be ready to turn down both their thermostats and air conditioning, as the winds of change of the Arab Spring continue to roil the Middle East and bring new political realities into being, undoubtedly not all to Washington and Tel Aviv's liking.

 


Source: http://oilprice.com/Energy/Natural-Gas/Egyptian-Israeli-Natural-Gas-Contract-Casualty-of-Arab-spring.html

By. John C.K. Daly of Oilprice.com

 

Back to homepage

Leave a comment

Leave a comment