• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

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...

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 04/23/2012 - 00:27 | 2365983 FeralSerf
FeralSerf's picture

You assholes aren't really Jews.  You're Eastern European Ashkenazi want-the-world-to-think-you're-poor-abused Jews.  You're no more Jewish than any other Caucasian.  Liars, yes.  Jews, no.

Sun, 04/22/2012 - 17:55 | 2365374 BooMushroom
BooMushroom's picture

Sarchasm: the yawning gulf between OP's meaning, and your understanding.

Sun, 04/22/2012 - 16:53 | 2365267 nmewn
nmewn's picture

lol...well lets see...Egypt imports around 50% of its food, is running out of cash, has its hand stuck out to the loan sharks at the IMF and has now cut the other hand off as a source of much needed cash.

What could possibly go wrong with that scenario?

http://af.reuters.com/article/egyptNews/idAFL2E8FK54X20120420?pageNumber=1&virtualBrandChannel=0

Sun, 04/22/2012 - 17:44 | 2365359 disabledvet
disabledvet's picture

And Egyptian "Libyan adventure." Cut off the Suez...keep up the pressure on the Christians in Southern Sudan..."yada, yada, yada" as they say. I'd be following Algeria very closely in here as well. They are a nuclear power...

Sun, 04/22/2012 - 18:03 | 2365387 nmewn
nmewn's picture

I dunno, cutting off the Suez is not really how you win the hearts & minds of the world...I can see them reverting to "ransom" as the region has done in the past, not sinking a ship in it. Of course predicting what psychos will do is a little iffy.

Maybe they can send Lara Logan back over as an emissary...too soon? ;-)

Yeah, the "peace & love tribe" is doing some serious hacking on Christians no doubt about it...kumbayah huh?

Sun, 04/22/2012 - 21:44 | 2365781 Acorn10012
Acorn10012's picture

Not soon enough!!!!!!

Mon, 04/23/2012 - 01:50 | 2366036 illadeljim
illadeljim's picture

And they only have a few months supply left -- could trigger civil unrest.

Sun, 04/22/2012 - 19:09 | 2365508 DosZap
DosZap's picture

Great, and since WE gave what?, 150 Million to the Brotherhood(in Egypt)..............who are our enemies, and radical Islamists to continue to foment the uprising.

And now are the majority power?.Think they had a hand in stirring this pot?.

Isn't Aiding and abetting the enemy considered a treasonous act?.My Constitution says so,what made up  version  homey be  using taday?.

This is the kind of  shit that starts LARGE wars, I mean like radiactive shit,global participation.

And,we have helped fund both these takeovers to make it happen.

Go Fukyoshima!!!!!!!!!!!!.......anyone have eyes to see what the hell is going on?,ears to hear?.

 Lybia(same story,arms and NATO help),who is in control there now.......our bestest Jihadists f*ks fwends.

Our enemies have control there also, who's next?? Fance?,the UK?.

Any sane person knows which of the two powers NOW in control( of both countries) is the worst for Americas interests.

 "When you lose it all, you Lose it", Mr. Celente's  not so favorite truism................................

Its the RED button stupid, JUST..........push it.

Sun, 04/22/2012 - 15:54 | 2365116 Don Diego
Don Diego's picture

No problem, if necessary the US Air Force will fly in the gas... no expense spared for the Chosen People courtesy of the US taxpayer.

Sun, 04/22/2012 - 16:02 | 2365130 sgt_doom
sgt_doom's picture

Yup, and look for those oil supplies by sea transported in by a refurbished USS Liberty, now serving as a small oil tanker....

Sun, 04/22/2012 - 16:02 | 2365131 Big Corked Boots
Big Corked Boots's picture

Downstater's refusal to allow fracking in New York evaporating in three... two... one...

Sun, 04/22/2012 - 15:59 | 2365122 HelluvaEngineer
HelluvaEngineer's picture

Time for (yet another) revolution!  They obviously still aren't free enough.

Sun, 04/22/2012 - 16:00 | 2365125 q99x2
q99x2's picture

Does this mean that the NWO has a few wrinkles to iron out.

Yes that is a statement and not a question.

Sun, 04/22/2012 - 16:07 | 2365143 Desert Irish
Desert Irish's picture

No the NWO script is working out just as planned.

Sun, 04/22/2012 - 17:37 | 2365347 LowProfile
LowProfile's picture

Looks like they need to hire better script doctors.

Sun, 04/22/2012 - 16:13 | 2365165 Sudden Debt
Sudden Debt's picture

The muslim brotherhood was allowed to step in and create the excuses for a total whipeout of muslims by the west.
This is just excuse number 12.

Sun, 04/22/2012 - 16:29 | 2365210 AnAnonymous
AnAnonymous's picture

As if US citizens require such excuses to perform the trick...

US citizen require strong incentives like running an extortion business with extorted being revenue assets to not perform one of their hobbies.

Sun, 04/22/2012 - 16:41 | 2365245 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

As if US citizens require such excuses to perform the trick...

Yet you perform the trick of praising and advocating US citizenism like a little trained monkey.

US citizen require strong incentives like running an extortion business with extorted being revenue assets to not perform one of their hobbies.

Sure, sure, always flinging poop at US citizenism like a little monkey. Nevertheless, you are always there singing praises to the glory of US citizenism.

Contradict yourself all the time, then denial, then endless repeation, and yet the one constant is your singing praises to US citizenism. One wonders who trained the little monkey...

 

Sun, 04/22/2012 - 17:02 | 2365301 AnAnonymous
AnAnonymous's picture

Yet you perform the trick of praising and advocating US citizenism like a little trained monkey.

___________________________________________

When and where? Any quote?

After the comedy of chinese citizenism, the new milk: the praise and advocation of US citizenism.

Such a wonderful world, a US citizen world.

Free fantasy show all the time.

Sun, 04/22/2012 - 17:27 | 2365335 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

When and where? Any quote?

http://www.zerohedge.com/news/what-capitalism#comment-2322962

"The best real thing ever is real US citizenism, the best real thing that has ever happened to real human beings."

http://www.zerohedge.com/news/martenson-interviews-khosla-ventures-us-ma...

"As long as US citizenism progresses in China, many things grow possible."

http://www.zerohedge.com/news/guest-post-face-authoritarian-environmenta...

"US citizenism, so much potential."

http://www.zerohedge.com/news/150-years-us-fiat?page=2#comment-2325947

"The US of A has been a success of the government state."

http://www.zerohedge.com/contributed/2012-15-15/visual-tour-fuel-pools-f...

"Ummmmm let's stick to US citizen solutions."

http://www.zerohedge.com/contributed/2012-15-15/pain-spain-too-big-be-co...

"US citizenism is the perfect system."

You really do the job when it comes to advocating for US citizenism. So are you Chinese citizenism citizen or...

 

Sun, 04/22/2012 - 17:28 | 2365338 WTFx10
WTFx10's picture

STFU

Sun, 04/22/2012 - 16:56 | 2365285 nmewn
nmewn's picture

More AnAnonymousism's blobbing up.

Sun, 04/22/2012 - 17:03 | 2365304 AnAnonymous
AnAnonymous's picture

Quite inspired.

Sun, 04/22/2012 - 17:28 | 2365337 WTFx10
WTFx10's picture

STFU

Mon, 04/23/2012 - 11:25 | 2367000 Nukular Freedum
Nukular Freedum's picture

Oh this is classic, first John and equisitly paneful, now ananonymous and fourthstooging. Cant get any better can it?

Sun, 04/22/2012 - 17:27 | 2365336 WTFx10
WTFx10's picture

STFU

Sun, 04/22/2012 - 18:10 | 2365397 Dugald
Dugald's picture

Sounds like a question for a cryptic crossword puzzle, and makes about as much sense.

Sun, 04/22/2012 - 16:03 | 2365135 Whoa Dammit
Whoa Dammit's picture

OT: Krugman lamely attempts to fight back today against ZH:

http://krugman.blogs.nytimes.com/2012/04/22/what-we-talk-about-when-we-talk-about-qe/

Quote from article: "I liked this comment: “Zero hedge commentary suggests the fed manipulates our very life blood, as ordered by the lizard men, in order to create infinite debt and establish a soviet central planning regime.”

Sun, 04/22/2012 - 16:05 | 2365140 SilverTard
SilverTard's picture

Krugman is an idiot. Who cares what he says.

 

 

Sun, 04/22/2012 - 16:26 | 2365203 wandstrasse
wandstrasse's picture

Krug-who??

Sun, 04/22/2012 - 16:46 | 2365239 Earl of Chiswick
Earl of Chiswick's picture

it's not lizard men you knob Krugman, it's reptilians

http://oi41.tinypic.com/12551r7.jpg

Sun, 04/22/2012 - 17:52 | 2365371 disabledvet
disabledvet's picture

EXACTLY! How dare he calls us mere "Lizard-man." Here's the bio:http://www.youtube.com/watch?v=zAcsoTBWd7w&feature=player_detailpage

Sun, 04/22/2012 - 19:46 | 2365591 knukles
knukles's picture

Yeah yeah yeah yeah yeah...
Take a close look at his picture in the Times. 
Ya'll know what they say, the eyes are the window to the green cold blooded Satanically possessed Keynesian soul.  (Thank God the people handing out The Watchtower just came by.  I needed more copies to give to the small kids on Halloween.  Their mom's just go ape-shit!)
His eyes are black balls.
Little teenie tiny round black balls.
Reptilian eyes.
He's one of the Reptile People.
And with those eyes, I'll bet that it was his kids they were talking about in them articles about the evil black eyed children.
And bet his waddling fat dog was the beast mistaken for the shadow people.
Gosh, being affiliated with the NYT can get one into so many sketchy relationships.
Fucking amazing.

Paul, give up.  Come over to the bright side with us. Leave the darkness behind.  You don't have to live like that any more.  There is a way out.

Sun, 04/22/2012 - 16:43 | 2365247 Acorn10012
Acorn10012's picture

Krugina - fishy smell included free of charge.

Sun, 04/22/2012 - 19:33 | 2365566 ISEEIT
ISEEIT's picture

You don't know Krug? Krug is obamma's mom's third cousin. Timmay's pop worked with her under cover of the Ford foundation.

It is something of a family gig after all.

Sun, 04/22/2012 - 16:40 | 2365242 Whoa Dammit
Whoa Dammit's picture

SilverTard,

He's more than likely saying it because of Tyler's post yesterday. 

http://www.zerohedge.com/news/krugman-rebutts-sic-spitznagel-princeton-grade-hilarity-ensues

Sun, 04/22/2012 - 16:42 | 2365246 jomama
jomama's picture

he certainly cares about what ZH has to say...

Sun, 04/22/2012 - 17:47 | 2365361 goldfish1
goldfish1's picture

Krugman on Krugman:

"a lot of vehemence but no coherence"

Sun, 04/22/2012 - 16:08 | 2365146 Desert Irish
Desert Irish's picture

And his point is?

Sun, 04/22/2012 - 16:34 | 2365228 wandstrasse
wandstrasse's picture

I have no clue either, but most probably some some more brilliant Keynesian doublethink bullshit.

Sun, 04/22/2012 - 16:09 | 2365153 bugs_
bugs_'s picture

the lizard men!!! i thought it was crab people.

Sun, 04/22/2012 - 18:11 | 2365398 smiler03
smiler03's picture

Neither. It's ManBearPigs.

Sun, 04/22/2012 - 16:14 | 2365167 Benjamin Glutton
Benjamin Glutton's picture

strawlizard!

Sun, 04/22/2012 - 16:31 | 2365218 AnAnonymous
AnAnonymous's picture

Quote from article: "I liked this comment: “Zero hedge commentary suggests the fed manipulates our very life blood, as ordered by the lizard men, in order to create infinite debt and establish a soviet central planning regime.”
_________________________________________

Either this US citizen reads this site often or he is a quick reader of trends because well, save the story of lizard men, the other points are regular best clicker topics.

Sun, 04/22/2012 - 16:34 | 2365227 knukles
knukles's picture

HAH!  Proof positive.
Krugnman's one of the Lizard People!

Mon, 04/23/2012 - 11:35 | 2367048 Nukular Freedum
Nukular Freedum's picture

This just in;

"£500,000 gold-leafed royal barge transported through London in preparation for the celebration of the 60-year reign of a shapeshifting Satanist (the world is mad)" - David Icke 

Yeah David, its the world.

Sun, 04/22/2012 - 17:26 | 2365334 WTFx10
WTFx10's picture

STFU

Sun, 04/22/2012 - 19:35 | 2365571 ISEEIT
ISEEIT's picture

Safe too Krug-sume that 'lizardman' = Jew?

Do the Krug ya'll!!

Sun, 04/22/2012 - 17:00 | 2365292 Tom_333
Tom_333's picture

At least he has noticed ZH. Wonder what Keynes had to say about the consequences of these policies - in his name.

-"He never got to that chapter...he died before he could find that out.. you say". Well on a long enough timeline everyone´s dead...

Sun, 04/22/2012 - 17:48 | 2365365 goldfish1
goldfish1's picture

At least he has noticed ZH

He gets schooled here on a regular basis.

Do NOT follow this link or you will be banned from the site!