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Isreal: Egypt's scrapped gas deal could hurt pece

Posted: 04/23/12 at 6:05 am
Tags: isreal egypt gas  

JERUSALEM (AP) -- Israel's energy minister is urging Egypt to reverse its decision to stop supplying Israel with natural gas.

Uzi Landau says the canceled deal will not only exacerbate power shortages this summer but also disrupt an already shaky peace treaty between the two countries.

Egypt's national gas company announced the decision late Sunday, saying Israel had not paid its bills.

Israel gets about 40 percent of its natural gas from Egypt. In the past year, saboteurs have repeatedly blown up the pipeline, disrupting the supply to Israel.

Landau says the gas deal was a cornerstone of Israel's peace treaty with Egypt. He expects electricity shortages this summer, partly due to the lack of Egyptian gas.

Israel is ramping up production on offshore oil fields to make up for the shortage.

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