Israel's Key Energy Provider, Egypt, Cuts Off All Natural Gas Supplies

Tyler Durden's picture

Two months ago, we warned that while the world had decided to blissfully move on from last year's topic #1, the MENA revolutions, and specifically the massive power vacuum left in their wake, things in the region were far from fixed. Quite the contrary, and as we added back then "it is very likely that the Mediterranean region, flanked on one side by the broke European countries of Greece, Italy, Spain (and implicitly Portugal), and on the other by the unstable powder keg of post-revolutionary Libya and Egypt, will likely become quite active yet again. Only this time, in addition to social and economic upheavals, a religious flavor may also be added to the mix". Yet nobody cared as after a year of daily videos showing Molotov Cocktails dropping like flies, people had simply gotten habituated and needed some other source of excitement. Nobody cared also when a week ago Art Cashin warned that the hidden geopolitcal risk is not Spain but Egypt. Today, Egypt just reminded at least one country why perhaps caution about the instability caused by having a military in charge of the most populous Arabic country and the one boasting "the Canal", should have been heeded after Egypt just announced that it is cutting off its natural gas supplies to Israel, which just so happens relies on Egypt for 40% of its energy needs.

From Reuters:

Egypt's energy companies have terminated a long-term deal to supply Israel with gas after the cross-border pipeline sustained months of sabotage since a revolt last year, a stakeholder in the deal said on Sunday.


Ampal-American Israel Corporation, a partner in the East Mediterreanean Gas Company (EMG), which operates the pipeline, said the Egyptian companies involved had notified EMG they were "terminating the gas and purchase agreement".

And judging by the sound and fury emanating from Israel the move was hardly expected:

The company said in a statement that the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company had notified them of the decision, adding that "EMG considers the termination attempt unlawful and in bad faith, and consequently demanded its withdrawal".


It said EMG, Ampal, and EMG's other international shareholders were "considering their options and legal remedies as well as approaching the various governments".


Before the sabotage, Egypt supplied about 40 percent of Israel's natural gas, which is the country's main energy source.

Suddenly Israel may have bigger things to worry about that whether or not to leak its Iran invasion plas on national TV:

Israeli officials have said the country was at risk of facing summer power outages due to energy shortages.


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.


Ampal and two other companies have sought $8 billion in damages from Egypt for not safeguarding their investment.

Furthermore, if the Egyptian move is indeed an escalation in strategic alliance shifts in the region, it could have truly huge implications:

The Egyptian decision is a potential blow to the country's ties with Israel, already tested by the toppling of Israeli ally President Hosni Mubarak a year ago.


Egypt was the first of two Arab countries to sign a peace trety with Israel, in 1979, followed by Jordan in 1994.a

Has the country's endless warmongering calls for a preemptive war against Iran backfired epically? We won't know for a while, but what we do know is that any government left in the power of military elites, is, how should we say it, unstable... for the simple reason that a military regime tends to require war to remind people why it is in charge. And the Egyptian "transitional" military government appears pretty much set to become permanent. Again from Reuters:

Ex-foreign minister Amr Moussa, a leading contender for Egypt's presidency, said on Sunday he would give the military a voice in key policies via a national security council, a move to reassure ruling generals about their status after a power transfer.


Moussa, a self-described liberal nationalist whose main election rivals are Islamists, also said Egypt needed a president with lobbying skills to work effectively with the Islamist-dominated parliament and other institutions after decades of autocratic government.

Which means add one more election to the already surging roster of short-term catalysts now including France, Greece, Germany and, as of yesterday, the Netherlands:

Egypt's presidential vote that starts on May 23-24 will mark the final stage of a transition to civilian rule from generals who took charge after Hosni Mubarak was ousted last year.

Unfortunately for Israel, either outcome will likely be a choice between a rock and a hard place, as the country appears to be rapidly alienating its one core catalytic long-term ally in the region.

Moussa, 75, said the national security council, to be chaired by the president, would include senior cabinet ministers plus top military officers. It would have a broad national security brief, he told a news conference.


"It has to consider all issues pertaining to national security and not only issues of defence or war, etc, but issues like water, issues like relations with neighbours," said Moussa, a former head of the Arab League.


"(The council) will be a power house on those issues of major priority for the national life," he added.


Other candidates, including one Islamist, have made similar suggestions but Moussa's proposal and his plans as a whole are more detailed than most.




The army has said it will hand over power and return to barracks by July 1, leaving the new president in charge.


But various comments from army officials, usually in private, or from the military-appointed cabinet have indicated that the military wants a longer term role in protecting broad interests that range from businesses to national security, and wants to guide state affairs that could impact them.

The only question Israel may want to answer now is whether it wants to get cozy with Russia, whose nat gas it may suddenly be very, very attractive. And for that to happen, it means a huge softening in its anti-Iran tone, which in turn will have a huge impact on regional geopolitics, and specifically the risk of war in Iran, and thus the price of Brent. All of this, of course assumes, Israel does not immediately retaliate against Egypt, recently a big recipient of US aid, not to mention tear gas, and start a pre-emptive two front pre-war...

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spiral_eyes's picture


I want to be a danger,

I want to be a danger to the world,

so that after my destruction, not a single blade of grass will remain on the face of the Earth,

or a single blade of grass for Gunther Grass's pipe,

upon the Earth where, since I was born, I pose a danger to the world.

Because it is my right!

— Itamar Yaoz-Kest (Israeli Poet)


cbaba's picture

I believe the biggest threat to Israel is not Iran or its neighbor. The biggest threat will come from inside of Israel itself, its Arab population is rapidly increasing and in a short future time the number of Arab origin Israelis will surpass the number of Jews and they will have a say on all things.

spiral_eyes's picture

In that case the real threat to Israeli are the Likudists who refuse to leave the settlements in the West Bank. 

Israel could retreat to the 67 boundaries — in which Jews outnumber Arabs almost 3:1 — and create a de facto Palestinian state in the West Bank. But no, the Likudists will not concede an inch to the Araboosh and so must deal with an Israel where it is 50/50, and where most of the Arabs do not have voting rights.

JW n FL's picture



I don’t think Israel needs Egypt’s Natural gas now that Israel controls Americas Oil Supply coming out of Iraq!


looks like Americas Crude will be of a lesser quality than it used to be and twice as expensive!

maybe America can spend another $70 - $80 Billion a Year Subsidizing Israel’s Energy Needs! LOL!!


We pay for Israel’s Guns, Bullets, Cash Needs and now!! America will be paying for Israel’s Energy too!

Can I claim those slick fuckers as dependants on my taxes?

It will NEVER!! Be enough!

Why not scam all of your needs from Ignorant Goys?

Our Manufacturing Base has been moved to China!


Our Schools pump out Ignorant Sheep!


Our Rights are being widdled away! MORE! And MORE!! EVERY YEAR!!

The First Amendment (Amendment I) to the United States Constitution is part of the Bill of Rights. The amendment prohibits the making of any law respecting an establishment of religion, impeding the free exercise of religion, abridging the freedom of speech, infringing on the freedom of the press, interfering with the right to peaceably assemble or prohibiting the petitioning for a governmental redress of grievances.


Now that the Pesky First Amendment is out of the way.. let’s hope they come for the second!


Why NOT! pay for Israel? Too??

We already do!

We pay for Israel to buys American Stocks in the NEW, NEW NORMAL!! Of Open Market Operations!


Let’s give away everything.. so the Top 400 can have ever more.. and so the our Lobby Whores in Washington DC can be bought off for Penny’s on the Dollar!


Don’t Worry!! The NSA is building a new operation to track every fucking word anyone speaks on planet Earth.. but the SAME! NSA!! Lets AIPAC control who is elected to Congress and the Senate?


I guess some Rich Fucker Lost America in a Poker Game to Israel and China! And they are now just draining the Country for what they rightly won from our Owner!


Wake me when you want to go hang some Treasonous Fucks!


WTFx10's picture

Jewish gangsters, AND you can HATE them and not be a JEW hater! Fucktards!

Pinto Currency's picture

Israel has lots of natural gas although a lot of it is also in Lebanon's waters.

The greatest threat to Israel is the US military figuring out their machinations toward America - a growing understanding which is likely underway right now.

Israel needs a War tout de suite if it has any hope of manipulating US strategic assets into a trap the US then has to fight out of.

Although it is probably still too late.

whstlblwr's picture

JW the psycho dweeb. Why not start your own blog and then you can put in some swastikas for background.

United States Foreign Aid, by Country--Economic and Military

Here are the top eighteen recipients in 2008:

(Billions of U.S. $)

Afghanistan 8,892
Iraq 7,452
Israel 2,425
Egypt 1,492
Russia 1,261
Sudan 1,196
Tanzania 1,061
Ethiopia 1,009
Pakistan 963
Colombia 888
Jordan 833
Mozambique 799
Kenya 719
Morocco 696
West Bank/Gaza 575
South Africa 568

Paul Atreides's picture

"Why not start your own blog and then you can put in some swastikas for background."- fact is anti semetic.

Israel is the largest cumulative recipient of U.S. foreign assistance since World War II. To date, the United States has provided Israel $115 billion in bilateral assistance. Almost all U.S. bilateral aid to Israel is in the form of military assistance, although in the past Israel also received significant economic assistance.

In 2007, the Bush Administration and the Israeli government agreed to a 10-year, $30 billion military aid package that gradually will raise Israel’s annual Foreign Military Financing grant from a baseline of nearly $2.55 billion in FY2009 to approximately $3.1 billion for FY2013 through FY2018. For FY2013, the Obama Administration is requesting $3.1 billion in FMF to Israel.

Learn more here.

Xkwisetly Paneful's picture

Can you please post how much bi lateral aid that the US has provided in total to all of the Islamic states together over the same time period.

Thanks in advance.

I am sure already know that all of this massive US aid to Israel amounts to  whopping 1.something percent of the country's GDP.

and of course the whopper doesn't count as foreign aid,

the federal reserve is permanent foreign aid to any country sitting on oil.

and the numbers in your post are child's play compared to $100/bbl oil vs $50. 


Egypt alone-600Kbbls/day=$30,000,000 in revenues difference a day of which they receive the lion's share all thanks to the fed cranking up the presses.

Any more links to peruse about Israel the welfare whore?






john39's picture

to buy security for Israel by paying off puppet dictators?  that harmed the local population you tool, so don't cite that as some sort of benefit to the locals...  didn't do anything for the U.S. taxpayer either.  end it all... all the bullshit aid to prop up israel, whether to israel or to israel's puppets... end it all.

Xkwisetly Paneful's picture


No one makes more from oil than your heros.

Without the oil revenues the middle east resembles the lesser parts of places like Nicaragua.

Almost the impossible, find endless money underneath your feet and watch large portions of the world pass you by.  Pre oil who was better off? Eastern Bloc, Southeast Asia, parts of central and south america or the avg middle easterner? 100 yrs later who is better off?

How much does it cost to get a barrel of oil out of the ground again?

Your thesis that Israel calls the shots all the while jew fed chairman and the administration effectively doubled your hero's already outrageous pay is too far. Better clean up the propaganda, to be effective the imbecile has to believe it.

$30million a day in Egypt alone.

If only there was no US aid and oil actually cost what it took to get it out of the ground with small profits along the way or significantly less than it actually does.


john39's picture

Nice try. Exploitation is the same in Egypt as it is here. People are not falling for the divide and conquer any longer. Wealth is extracted by by multinational corporations with the help of corrupt puppet dictators. People are on to the game, and the Muslim bashing isn't going to work this time.

Xkwisetly Paneful's picture

Leads to them being better off if never having found oil which of course is preposterously farcical to a 5yo.

Yes people are onto the game, the days of  suspending disbelief involving radical islam are over.





john39's picture

Bankers looting the planet and we are supposed to fall for the Muslim invasion red herring, is that it? Good luck with that.

jeff montanye's picture

you think?  since zionists worked so very hard to make it happen?  also should there be any deductions for the money sent to iraq and afghanistan for, oh i don't know, the thousands of iraqis and afghanis blown the fuck up, shot, raped, tortured or just crippled for life, chased from their own country, etc. etc. etc.?  makes one want to through a shoe at a number of people.

Pinto Currency's picture


Most know that something very unjust has happened to the Iraqi people.,%20BUSH.html

rocker's picture

The problem is many who are not past 11 years of high school believe it. That is who most main street media assholes talk to with their phony "talking points agendas".

rocker's picture

Never thought about why Nat Gas is soooo cheap here and everybody else pays up for the shit.

So the U.S. powers to be run up the price of U.S. Oil so Americans can pay for cheap Nat Gas going to Israel.

Just Sayin'.   Even when the U.S. demand for oil is down to a point that we now export.   Hmmmmm.

AnAnonymous's picture

Can you please post how much bi lateral aid that the US has provided in total to all of the Islamic states together over the same time period.


Why lump them as one?

More importantly, the list shows that Afghanistan and Iraq, two newly introduced nations in the US citizen nations hall of fame, top the list.

Those are no longer islamic nations, but US citizen nations.

TheFourthStooge-ing's picture


More importantly, the list shows that Afghanistan and Iraq, two newly introduced nations in the US citizen nations hall of fame, top the list.

Those are no longer islamic nations, but US citizen nations.

Soon to be Chinese citizenism nations via blobbing up.


Amused2Death's picture

whstlblwr, that's a pretty disingenuous snapshot.  Only reason Iraq and Afghanistan showed up is because of the two wars.  Iraq received zero dollars until we started the war.  Afghanistan received a measly few millions a year until we started the war.  Israel has been receiving $3+ billion every year, every administration, whether they asked for it or not...

Marginal Call's picture

You've got to be pretty god damned fucking delusional to call what we've been doing giving to Iraq and Afghanistan aid.

JW n FL's picture



Marginal Call

You've got to be pretty god damned fucking delusional to call what we've been doing giving to Iraq and Afghanistan aid.


If only I could PLUS! You to the Moon and Back!

mjk0259's picture

Per capita, that would make Israel number 1. Probably your figures don't cound all the "loans" that get forgiven almost immediatly. The payments to egypt are for not attcking Israel.

JW n FL's picture

Careful! the Baroness got kicked out of the House of Lords!

The rest of us Goy Slaves should really be more careful about what we say!

Nassim's picture

Yes, and there is gas offshore Gaza - that is why they won't let the Palestinians have a port.

Seasmoke's picture

Good to see so many green arrows....JW usually doesnt get as many as he should

frostfan's picture

Waaahhh Wah Wah.   Geez, some of you posters are such whining crybabies.   The joooss take everything!!!!   Wah Wah Wah!!!!   Let me lie some more and say $70-$80 billion of oil use in Israel a year!!!!   Wah Wah Wah  Lie Lie Lie!!!!!!!

We crybaby christians are such perfect angels!!!!    All the evil is the jooooossssssssssss!!!!!


From above

We pay for Israel to buys American Stocks in the NEW, NEW NORMAL!! Of Open Market Operations!

And it's israel's fault they buy US stocks????

john39's picture

Well its their bullshit fiat system afterall. Who else is going to prop it up?

JW n FL's picture



The FACT! that the JEWS are the second largest Lobby! in America??

only behind Wall Street..

The FACT that the Federal Reserve is FULLY FUNDING the central Bank of Israel’s Purchase of U.S. Stocks.. in its NEW Open Market Operations Push??

The Largest LOBBIES!

Get the Most Money back from the Government, Tax Dollars!!


The Federal Reserve, in Loans!!


How about GANGTER!! AIPAC?? AIPAC the Registered Foreign Agent? AND!!!!!


And the TRUTH!! of it ALL!!! is I don’t care if the Largest Lobby was Chinese Martians who were all gay porn starz!

I don’t care who is Bribing my Government!

I ONLY!! CARE!! That my Government is filled with Lobby Whores that are in FACT!! Owned by Someone!

And the FACT!! That those someone’s happen to be Jewish? Is a Problem You have!

It is a Problem the Sheepeople have because they have been BRAINWASHED!!!

But it is NOT! a Problem I have!

I want ALL! the Lobby Whores and their Owners!! Prosecuted for Treason!!


My Country has been Gutted Like a FUCKING FISH!!

The Manufacturing Base was Shipped off to Mexico, China, India, Brazil and everywhere else a BARGAIN! Could be found! And Thusly our National tax Base has been Gutted along with those Manufacturing Jobs that were Shipped Off Shore!!

And let’s Talk about how Wall Street enjoys Tax Credits and Subsidies for Shipping those Jobs Off Shore?? What in the FUCK IS THAT ABOUT??


The NSA / CIA / FBI are so FUCKING STUPID?? Or do they ALL! have Hard Ons!! For the Private Consulting Jobs that await them on Wall Street for IGNORING!! America being DESTROYED from the INSIDE OUT??

I will say it once again! I don’t care if the Largest Lobby Group was the Pet Shop Boys.. Duran Duran.. the Back Street Boys or the Rolling Stones! I don’t fucking care!


And people have to wake the fuck up to stop it!



fleur de lis's picture

The NSA is nothing but a collection of whores-on-payroll whose sole responsibility is to serve domestic traitors and their foreign agent friends.

smb12321's picture

My oh my, it's yet another evil American institution.  Is there anything in this country you find positive?

Likstane's picture

I'm positive the Booshes know it was an inside job.  I'm positive Barackistan wasn't born in Hula-land.  I'm positive the USA I was raised to believe in and is the land of the free is a sham.  I'm positive the world is run by a bunch of Jewish bankers and the US Military Corp. is it's main enforcer.  Other than than, I'm pretty open for discussion. 

resurger's picture

you just made me fucking wordless!

+ Quintrillion JWnFL

CrashisOptimistic's picture

Conquered people usually do not have voting rights.

john39's picture

conquered people, like in the U.S., with worthless voting rights?  can we thank israel for that too via their proxy the FED...

JW n FL's picture



Hack the Vote

How to Hack a Voting Machine

Uploaded by CrazyLarry71 on Oct 28, 2006

Here's a study done by Princeton on how to hack a voting machine running Diebold software. Now go tell your friends...

Since 2006 this has been common knowledge!

Hacking Democracy - Full Length

When you can't control the Politicians or the voters, then you control the counting! Go back to paper votes and we will have a President that was voted in!

P.S. This movie is called "Hacking Democracy" because voting is a democratic process. They makers are aware that the U.S. was founded as a Constitutional Republic.

So! how come the Corporate Owned Media does not put this information in Heavy Rotation on CNN / FOX and / other Bullshit Sheepeople Entertainment, Offical Version Relay Channel(s)!

Campaigning for the 2012 presidential race has already begun, but what the candidates don't know is that come election day, hackers could be the ones whose votes have the biggest impact.

Researchers from the Argonne National Laboratory in Illinois have developed a hack that, for about $26 and an 8th-grade science education, can remotely manipulate the electronic voting machines used by millions of voters all across the U.S.

The researchers, Salon reported, performed their proof-of-concept hack on a Diebold Accuvote TS electronic voting machine, a type of touchscreen Direct Recording Electronic (DRE) voting system that is widely used for government elections.

Read more:


AmCockerSpaniel's picture

What you are hoping for, is that the ones who got in with the help of hacking the vote, to turn on the hand that helped them that way.

Rusticus's picture

The Palestinians are not  "conquered" they are occupied, it's transitional ... on a long enough timeline the survival rate of israel drops to zero. 

o2sd's picture

Palestine ceased to exist in 1516 when the Ottomans "conquered" them. If the Palestinians don't want to be occupied by Israelis, they should try being ruled by Egyptians, or Syrians.


JOYFUL's picture

...Palestine ceased to exist in 1516 when the Ottomans "conquered" them...

A startlingly contrarian take on history...

according to which, I guess Greece and the Slavic states also "disappeared" as well, under the Ottoman tide, and are currently up for grabs to the highest bidder in the neocolonial sweepstakes...

oh, wait! Dude may be on to somethin!

o2sd's picture

Are you saying that Palestine was not under Ottoman rule up to the 20th Century?


JW n FL's picture



England gave Israel the Land!


see here for Ttile, Ttile Insurance and the rest of the Closing docs! LOL!! ---->

From 1945-1948, there was a groundswell of public support for the State of Israel by Jews world-wide, and in the United States in particular. Meanwhile, in Palestine, bombings and retaliatory murders are daily occurrences, as the British were unsuccessful at keeping the peace between Jew and Arabs. Eventually British Prime Minister Bevin decided that England would give up its rule over Palestine and handed the problem over to the United Nations to solve.

FeralSerf's picture

I think I read somewhere that England's King was king by the grace of God.  It's called subcontracting.

JW n FL's picture



here is the FIRST! Terrrorist Act.. in the World!! Commited by?


In 1946, the British attempted to defeat any Jewish opposition by arresting 5000 Jews in Palestine, including the leaders of the Hagannah and the Jewish Agency. The Irgun reacted by bombing the headquarters of the British forces at the King David Hotel in Jerusalem.

I wonder if the Copy Right Laws are still in effect for the Jews and Terrorist Acts? LOL!!

Oh regional Indian's picture

Seriously, eh?

1945-1948. The lies are endless.

THe Balfour Declaration was either written or agreed to in pricniple in 1918 or so.

Israel = Put where it was, peopled with who it has been, allowed to be who they have been..... perhaps they are not "intended" to survuve what is up-coming as a nation.

I don't think Money-men think about lives lost and such silly details. Ever.




Edit: Here we go:

The Balfour Declaration (dated 2 November 1917) was a letter from the United Kingdom's Foreign Secretary Arthur James Balfour to Baron Rothschild (Walter Rothschild, 2nd Baron Rothschild), a leader of the British Jewish community, for transmission to the Zionist Federation of Great Britain and Ireland.

His Majesty's government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavours to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country.[1]

The "Balfour Declaration" was later incorporated into the Sèvres peace treaty withTurkey and the Mandate for Palestine. The original document is kept at the British Library.