Egypt informed Israel Sunday afternoon that it is unilaterally cancelling the agreement of supply of gas to Israel. The announcement was made to EMG, the firm that receives the gas from Egypt, and reported on Channel 2 news.
The peace treaty with Egypt includes a financial appendix, in which Egypt agrees to supply Israel with oil. Several years ago the appendix was changed so that the oil was replaced by gas. The treaty commits Egypt to supply Israel with the amount of gas it requires for a specified period, in exchange for payment.
Egypt's unilateral abrogation of the treaty causes "tremendous financial damage" to Israel, and to the Amgas and Ampal companies, according to Channel 2. However, the primary damage is diplomatic, reporter Amnon Abramovich said.
The pipeline carrying gas from Egypt to Israel was blown up 14 times since the Mubarak regime was toppled in February 2011.