Egypt to pay Israel $1.76bn fine after halting gas exports

The state-owned Israeli electric company said yesterday that Egypt would pay $1.76 billion in compensation for halting natural gas exports, Al-Khaleejonline.net reported.

In a statement, Israel Electric Corp. said that an international arbitrator awarded it $1.76 billion in addition to interest and legal expenses.

According to Reuters, Israel Electric said it would act to enforce the ruling through dialogue with the Egyptian companies.

Egypt signed an agreement to sell gas to Israel for 20 years, but the agreement collapsed in 2102 after the pipeline used to pump the Egyptian gas to Israel came under attack in the Sinai Peninsula.

The Israeli company claimed the interruptions and halt of gas supplies caused it losses because it was obliged to buy gas from alternative sources at higher prices.