Cairo – Mubasher: Egypt has closed a settlement agreement to an international arbitration with Israel worth $1.76 billion in favour of Israel Electric Corporation against Egyptian Natural Gas Holding Company (EGAS), Egyptian General Petroleum Corporation (EGPC), and East Mediterranean Gas (EMG).
The most populous Arab country will pay this fine as it halted gas supplies to the Israeli companies since 2012, a government source told Alborsa News.
Egypt will start paying the fine in installments as soon as the pipeline linking the two countries begins operation in the first half of 2019, the source said.
This will enable the Egyptian government to utilise revenues from transporting the gas from Israeli fields through pipeline network in paying off the fine, he indicated.
In August, two sources familiar with the matter said that the Egyptian government reached an agreement to reduce the international arbitration’s fine to $470 million to be paid in 15 years.
