Ooops. Embarassing gas problem

FluffyMcDeath said:
Seems like Mubarak's problems are not all behind him yet. He has a little problem with gas.
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Seems Egyptians don't understand economics.

The natural gas spot price is not relevant to the negotiated price and volume agreements under long-term delivery contracts.

$170M on a 1 Trillion MMcf 15 year contract! LOL, Idiots

Egyptians are going to quickly find out that gas is not like oil, you need a pipeline to deliver natural gas, and it costs lots of money to build a natural gas pipeline, and the longer the pipeline the more it costs to build and maintain. Where you build the pipeline to, becomes your "preferred customer"

The pipeline in place now supplies natural gas to Jordan, Syria and Lebanon, and Israel. It has a total length of 1,200 kilometres (750 mi) and cost $1.2 billion dollars to construct.

Currently Egypt is selling natural gas to no one because of the pipeline damage.

Just like Libya's only customer for Natural Gas is Italy, because the only Natural Gas Pipeline from Libya is an undersea line to Sicily. (sales currently suspended)
 
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