Egyptian Intel Is Big Gainer From Israeli Gas Deal, Report Says
Delek Drillingâs partner in the EMG gas pipeline to Egypt, the Egyptian company East Gas, is owned by Egyptâs intelligence service, Egyptian news site Mada Masr reported.
East Gas, the main beneficiary of plans to export Israeli natural gas to Egyptâs private consortium Dolphinus Holdings via the EMG pipeline, is a private company, most of whose shares are held by Egyptâs intelligence service, says the report.
To really understand Israel and the Middle East - subscribe to Haaretz
âThe gas import deal â" scheduled to come into effect early next year â" found that the repeated claims by Egyptian government officials that the venture is a purely private sector affair wholly outside the âgovernment frameworkâ are misleading at best,â stated Mada Masr in its report.
The intelligence service is slated to receive 80% of East Gasâs income, it states.
Keep updated: Sign up to our newsletter
Thank you for signing up.
We've got more newsletters we think you'll find interesting.Click here
Oops. Something went wrong.
Please try again later.Try again
The email address you have provided is already registered.Close
Furthermore, Egyptian intelligence also has an interest in Dolphinus, says the Egyptian news outlet.
âDocuments and sources reveal that through a complex web of overseas shell corporations and subsidiaries, the intelli gence body stands to cash in at all stages of the deal, from the transport of Israeli gas to Egypt to its final sale to the Egyptian government. These profits end up in the coffers of the GIS, and not the public budget,â states Mada Masr.
The news site says the intelligence service worked through shell companies in countries including the Virgin Isla nds, Luxembourg, Switzerland and the Netherlands, in order to conceal the identity of the Egyptian players, avoid taxes and shield them from accountability.
>> Read more: Egypt, Economic Miracle or Basket Case on the Nile? | Opinion
Israel is supposed to start exporting gas to Egyptâs Dolphinus consortium in March 2019, via the EMG pipeline. The gas, from Israelâs Tamar and Leviathan reserves, is valued at $15 billion. Last month, Delek, Noble and East Gas announced they were buying 39% of EMGâs shares for $518 million.
Meanwhile, Egypt recently discovered its own massive offshore gas reserves. Mada Masr says the Dolphinus deal does not appear to be in Egyptâs best interests, as the Israeli gas costs significantly more than locally produced Egyptian gas.Source: Google News Egypt | Netizen 24 Egypt