International Arbitration Plays Key Role in Gas Deal, Egypt’s Future
Almasry Alyoum English Edition
August 11, 2011
Since former President Hosni Mubarak’s fall in February, political turmoil has stopped the flow of natural gas from Egypt to Jordan and Israel pursuant to an international agreement. The stoppage might result in a business arbitration case that could cost the Egyptian government billions of dollars. However, some officials believe that the arbitration proceedings may reveal the corruption that was inherent to the original deal resulting in a favorable outcome for Egypt in arbitration.
The 20-year-long deal built a pipeline in 2008 and promised Israel gas from Egypt at below-market price. “The deal that brokered the sale of one of Egypt’s most precious resources to one its most hated neighbor is widely considered evidence of the rampant corruption under the former president.” Since the protest movement, there has been a call for the end of the deal with the alleged behind-the-scene political corruption.