Israel’s Electric Corporation Approves Compensation Settlement with Egypt
IEC had a standing agreement to receive gas from Egypt, but a series of sabotage explosions of the gas pipe during the Arab Spring led to it being shut down since
Lior Gutman : 2019-05-23T11:22:18..
The board of directors of state-owned Israel Electric Corporation (IEC) approved on Wednesday a long-negotiated settlement with Egypt’s two national gas companies, which will see these companies pay IEC $500 million as compensation for failure to uphold previous agreements. IEC had a standing agreement to receive gas from Egypt, but a series of sabotage explosions of the gas pipe during the Arab Spring in 2011 led to it being shut down.
For daily updates, subscribe to our newsletter by clicking here.The matter has been in international arbitration since, with the court ruling in 2015 that The Egyptian Natural Gas Holding Company (EGAS) and The Egyptian General Petroleum Corporation (EGPC) should pay IEC $1.76 billion. EGAS and EGPC refused and the companies have been in contact since regarding a possible settlement.