CAIRO (AFP) – An Egyptian court on Tuesday ordered a freeze on controversial gas exports to Israel, saying parliament must first be consulted on the 15-year deal with Egypt’s former foe, a judicial source told AFP.

But Israel expressed confidence that the Egyptian government would not allow any interruption to gas deliveries under the deal despite the court order.

The Cairo administrative court ruled that “national resources belong to current and future generations, and the executive must first get parliament’s approval” on gas export deals, the source said.

Former diplomat Ibrahim Yussri, along with some members of the opposition, brought the case against the government several months ago.

Egyptian gas began flowing to Israel in February and the supply was completely integrated in Israel’s network in May, after a deal was first signed in 2005.

The oil ministry declined to comment on the ruling when contacted by AFP. It was not immediately clear if or when the government would implement the court’s decision.

But the Israeli infrastructure ministry expressed confidence that there would be no interruption to supplies.

“We are absolutely certain that the gas deal with Egypt will be respected along with the trade agreements,” a ministry statement said.

“The infrastructure ministry has not the slightest doubt that the Egyptian firm will respect the commercial agreements it reached with its Israeli customers.”

The 2005 deal, which is reportedly worth 2.5 billion dollars, foresees the export of 1.7 billion cubic metres (59.5 billion cubic feet) of Egyptian natural gas to Israel over 15 years.

A new underwater pipeline runs 100 kilometres (60 miles) from the Egyptian Mediterranean city of El-Arish to the Israeli port of Ashkelon, supplying gas pumped from a gas field in the north of the Sinai peninsula.

Egypt in 1979 became the first Arab country to sign a peace deal with the Jewish state, but since then the nation has refused a “normalisation” of relations until Israel hands back occupied Arab lands.

Egypt’s Muslim Brotherhood opposition, which controls a fifth of seats in parliament, has opposed exporting gas to Israel because of what it calls the country’s punishing blockade of 1.5 million Palestinians in the Gaza Strip.

source

Posted on Wednesday, November 19th, 2008 at 3:01 pm and is filed under Energy Trading.
Tags: Cairo, controversial gas exports, Egypt, Egypt's Muslim Brotherhood, Egyptian court, Egyptian government, Egyptian Mediterranean, gas deal, gas export deals, gas field, Gaza Strip, Ibrahim Yussri, Israel, natural gas, oil ministry, opposed exporting gas, port of Ashkelon, Sinai peninsula, USD.