CAIRO, June 21 (UPI) -- Israel's Eastern Mediterranean Gas expects to sign a deal with Egyptian General Petroleum Corp. and Egyptian Natural Gas Holding Co. to import Egyptian gas.
The companies signed multibillion dollar agreement last week in Cairo; under the deal, EMG will import gas for 20 years. The agreement is worth between $14 billion and $28 billion, depending on whether all the gas is sold in Israel or re-exported to European and Middle Eastern countries.
EMG is considering reselling gas to Greece and Turkey.
The value of the deal is calculated according to the price of natural gas in Europe and Israel. If all the gas is sold to the Israeli market, the deal will be worth $14 billion for the 20-year period.
EMG is a partnership formed by the National Gas Co., of Egypt, Israeli businessman Joseph Maiman, and Egyptian businessman Hussein Salem.
EMG and the Israel Electric Corp. are holding talks for the supply of 2.22 billion cubic yards for 15 years, with a five year renewal option. The deal is worth $2.5 billion.
The Israeli and Egyptian governments expect to sign an agreement June 30.
