Sunday, April 22, 2012

Arab Spring: "Israel's Key Energy Provider, Egypt, Cuts Off All Natural Gas Supplies"

Israel has had some very fortunately timed natural gas finds.
If they can keep them. See links below the jump.
From ZeroHedge:

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"....MORE
Eastern Mediterranean: "Great. Like They Needed Something Else to Fight Over"
Russian Carrier, Israeli Military in Joint Exercises This Week Off Cyprus
How Much will Noble Energy Be Taxed On Their Big Israeli Gas Find? (NBL)

Soros, Berkshire/ISCAR's Wertheimer Buying into Israeli NatGas Exploration (NBL; ATPG; ADENF)