"Until 7 p.m. I dealt with several matters, among them a gas deal that requires a decision," Netanyahu said Wednesday during a hearing in his trial. Part of his testimony referred to the same deal with Egypt that he has been reexamining, as first revealed by Israel Hayom.
"It must be decided upon (the gas deal) in the coming days. It is a historic deal. It has both positive and complex implications," Netanyahu continued. Israel Hayom reported last month that following indications of breaches of the peace treaty by Egypt, Netanyahu, together with Energy Minister Eli Cohen, would assess whether and how to move the deal forward.
It appears that Israel is, for the first time, using a significant energy-economic lever that links Egypt's compliance with its obligations to Israel's willingness to sell it much-needed natural gas. Egypt has faced severe energy shortages in recent years, at times leading to rolling blackouts lasting several hours in parts of the country. Increasing Israeli gas exports is meant to ease that shortage.
Israel Hayom also learned that during discussions Tuesday night, the prime minister dealt with the issue of weapons smuggling from Sinai.
Egypt possesses large natural gas fields of its own but diverts much of its supply to exports through liquefaction facilities to obtain foreign currency and shore up its trade balance and dwindling reserves. Gas imported from Israel is therefore crucial to its domestic supply.
