Israeli Prime Minister Benjamin Netanyahu instructed on Wednesday “not to proceed with the massive gas deal with Egypt without his personal approval,” following “reports of Egyptian violations of the peace agreement” through military reinforcements in Sinai, according to Israel Hayom newspaper.
The newspaper stated, “Netanyahu will discuss with Energy Minister and political-security cabinet member Eli Cohen whether to proceed with the deal and how to do so before making a final decision on the matter.”
The report added that Israel “is using for the first time a heavy economic-energy pressure card to ensure Egypt’s commitment to the agreements,” noting that “Egypt has suffered for years from energy shortages, sometimes leading to long power outages.”
The newspaper quoted political sources saying Netanyahu and Cohen “intend to ensure that Egypt will adhere to its commitments under the peace agreement,” pointing out that “Cairo is in dire need of Israeli gas and is willing to pay a much higher price than Israeli consumers pay.”
It also mentioned that the operators of the Leviathan gas field, “Ratio” and “NewMed Energy,” affiliated with the Delek Group owned by Israeli businessman Yitzhak Tshuva, signed about three weeks ago a gas export agreement to the Egyptian market.
The deal, described as “the largest in Israel’s history,” involves selling 130 billion cubic meters of gas until 2040, for $35 billion. The Egyptian energy company “Blue Ocean Energy” is the buyer.
According to the newspaper, “this deal joins the supplies of Israeli natural gas to Egypt over the past five years.”
The newspaper added that “the law grants Energy Minister Cohen the authority to approve the deal, and without his signature, the agreement will not come into effect.”
It mentioned that Israel intended “to approve the deal as is,” but “reports about Egyptian military reinforcements in Sinai prompted senior political levels to reconsider,” until Netanyahu issued orders to personally review the matter.
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