EGYPT: Court allows natural gas exports to Israel, overruling a prior verdict to stop the deliveries

Record ID: 755687

  • Title: EGYPT: Court allows natural gas exports to Israel, overruling a prior verdict to stop the deliveries
  • Date: 28th February 2010
  • Summary: CAIRO, EGYPT (FEBRUARY 27, 2010) (REUTERS) VARIOUS EXTERIOR SHOTS OF OF HIGHER ADMINISTRATIVE COURT "SCALES OF JUSTICE" ON WALL INSIDE COURT PRESIDING JUDGE MOHAMED AL-HUSSEINI ENTERING COURTROOM AUDIENCE (SOUNDBITE) (Arabic) PRESIDING JUDGE MOHAMED AL-HUSSEINI, SAYING: "The violation is based on the lack of a mechanism for a regular review of Egyptian needs in the fifteen years which is the duration of the agreement." AUDIENCE (SOUNDBITE) (Arabic) PRESIDING JUDGE MOHAMED AL-HUSSEINI, SAYING: "The court has ruled the following: First, the acceptance of the two challenges number 5546 and 6013, 55 high court, and cancelling the challenged verdict which should be judged again. It is not within the jurisdiction of the courts to hear appeals against the government's decision to export gas to eastern Mediterranean markets, including Israel, as it is a sovereign Egyptian security act. JUDGE ADDRESSING CROWD DOZENS GATHERED OUTSIDE COURT (SOUNDBITE) (Arabic) PARLIAMENT MEMBER, MOHAMED ALSADAT, SAYING: "Today (we achieved) a big victory that cancel decision number 100, which enables the Ministry of Petrol, which reports to the cabinet, to continue to pursue deals. So the government now and after the cancellation of that decision should review all agreements and exporting contracts to monitor the prices, periods, and quantity. I think that in itself, this is a major victory." PEOPLE GATHERED OUTSIDE COURT (SOUNDBITE) (Arabic) PROSECUTOR, ABDEL AZIZ AL-HUSSINI, SAYING: "From the moment of the ruling was stated both the state and the government should follow the executing law, and respect legislation and constitution, because the ruling is announced today and tomorrow the country will continue exporting. This is the plight, and ignoring a judicial and executive decision indicates the fall of the regime". EXTERIOR OF COURT
  • Embargoed: 15th March 2010 12:00
  • Keywords:
  • Location: Egypt
  • Country: Egypt
  • Topics: Energy
  • Reuters ID: LVAAADEZKQHUU5X4HA7KRPO1K814
  • Story Text: A Cairo court on Saturday (February 27) gave the Egyptian government legal clearance to allow natural gas exports to Israel, cancelling a lower court's verdict to stop exports.
    The Higher Administrative Court, an appeals court for cases involving the state, also ruled Egypt should monitor the price and quantity of its exports and ensure it met local energy needs before exporting.
    The ruling capped a legal battle that caused public controversy, particularly focused on the price of gas sold to Israel, and reflected the cool nature of ties with the Jewish state despite a 1979 peace accord.
    Mohamed al-Husseini, who chaired the court's meeting, said the state's decision to export gas to Israel was "sovereign."
    "It is not within the jurisdiction of the courts to hear appeals against the government's decision to export gas to eastern Mediterranean markets, including Israel," he said.
    The court also ruled Egypt should create a mechanism to set the quantity and price of its gas exports, and undertake regular reviews to make sure local markets were well-supplied before it sold gas abroad, the state news agency MENA reported.
    Parliament Member Mohamed al-Sadat described the decision as "a major victory."
    Gas started flowing to Israel through a pipeline for the first time in May 2008 under an agreement signed in 2005 for the supply of 1.7 billion cubic metres a year over 20 years.
    In November 2008, a Cairo court overruled the government's decision to allow the exports after a group of lawyers filed a suit against the state, saying the Israelis were buying the gas at prices below the international level.
    The Egyptian government is reluctant to reveal the price it receives for natural gas exports.
    A court ruled in February 2009 that gas exports could continue pending a review of the November ruling, although the government had ignored the verdict anyway.
    The case prosecutor Abdel Aziz al-Hussini said the government must abide by the court's ruling.
    "From the moment of the ruling was stated both the state and the government should follow the executing law, and respect legislation and constitution, because the ruling is announced today and tomorrow the country will continue exporting. This is the plight, and ignoring a judicial and executive decision indicates the fall of the regime," he told reporters.
    Some Egyptian leftists and Arab nationalists oppose in principle the sale of gas to Israel, which fought four wars with Egypt between 1948 and 1973 before making peace in 1979.
    Egypt exports gas to Israel and Arab states by pipelines and also ships liquefied natural gas (LNG) abroad. In 2008 it said it would not sign any new gas export contracts until 2010 in order to meet rising local demand.
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