|April 22, 2012
Egypt has scrapped a 2005 gas export deal with Israel, which relies on Egyptian natural gas for 40 percent of its supplies to produce electricity.
The accord was "annulled on Thursday with the East Mediterranean Gas Co (EMG) which exports gas to Israel because the company failed to respect conditions stipulated in the contract," Mohamed Shoeib of Egyptian Natural Gas Holding Co (EGAS) told AFP.
The sale of gas to Israel, which signed a peace treaty with Egypt in 1979, has always been controversial in the Arab world's most populous country. It was the largest trade deal between the two former foes.