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Well this is the weirdest business deal I have heard in a long long time.
Apparently (it was a secret deal) the Egyptian's were selling their "friend" Israel natural gas at BELOW market value (subsidizing the cost).
http://richardbrenneman.wordpress.co...fuel-supplies/
http://weekly.ahram.org.eg/2010/1027/ec1.htm
http://weekly.ahram.org.eg/2011/1052/ec1.htm
How dumb must a government be to do things like this?
Apparently (it was a secret deal) the Egyptian's were selling their "friend" Israel natural gas at BELOW market value (subsidizing the cost).
http://richardbrenneman.wordpress.co...fuel-supplies/
http://weekly.ahram.org.eg/2010/1027/ec1.htm
http://weekly.ahram.org.eg/2011/1052/ec1.htm
“To export gas at marginal prices and import other petroleum products at international prices to fill the gap is ridiculous,” says Zahran. Egypt consumes 13 million tonnes of gas oil per year, he points out, and two million tonnes each of fuel oil and gasoline. These are sold at $14, $8 and $15 per million British thermal unit (Btu) in the international market. In the meantime, Egypt makes up for the shortage in gas supplies by purchasing gas from the foreign partner at an average price of $3.27 per million Btu.
How dumb must a government be to do things like this?