Egypt says gas deal with Israel is purely commercial'

"The deal is a purely commercial transaction concluded on the basis of strictly economic and investment considerations, and entails no political dimensions or understandings of any kind, SIS chief Diaa Rashwan said in a statement. The agreement serves a clear strategic interest for Egypt, namely strengthening its position as the sole regional hub for gas trading in the Eastern Mediterranean, Rashwan added."

"Today, I approved the largest gas deal in Israel's history. The deal is worth 112 billion shekels [$34.7bn]. Of this total, 58 billion shekels [$18bn] will go to the state coffers, Netanyahu said during a televised address in Israel, alongside energy minister Eli Cohen. The agreement is with the American company Chevron, with Israeli partners who will supply gas to Egypt, Netanyahu added."

"Israel had signed the export agreement in August with Chevron and its partners to supply up to $35bn of gas to Egypt from the Leviathan natural gas field. But according to a report by the newspaper Israel Hayom, in September, Netanyahu had instructed that the gas agreement with Egypt should not move forward without his approval. His instructions came amid Israel's allegations that Cairo had violated the peace treaty signed between the two countries through military deployments in Sinai claims that Egypt has denied."

Egypt and private energy companies finalized a roughly $35 billion natural gas export agreement with Israel under market rules and without government involvement. Egypt’s State Information Service described the transaction as purely commercial, based on economic and investment considerations, and asserted that no political dimensions apply. The agreement was framed as strengthening Egypt’s position as the sole regional hub for gas trading in the Eastern Mediterranean. Israeli Prime Minister Benjamin Netanyahu approved the deal, calling it Israel’s largest gas agreement, valued at 112 billion shekels with 58 billion shekels to state coffers, and involving Chevron and Israeli partners supplying gas from Leviathan. Netanyahu had earlier restricted progress pending his approval amid tensions over alleged Egyptian Sinai deployments, which Egypt denied.

Read at www.aljazeera.com