Whatever the reason for this decision, it has squandered one of the Egyptian energy industry's most precious resources. The one thing more important for gas customers than attractive prices is security. As Algeria discovered in the early 1980s and Russia and Ukraine in 2009, once a gas supplier gains a reputation for unreliability, it is very hard to shake off. With the pipeline bombings and now this contractual action, Egypt has squandered a lot of hard-won trust.
This incident marks the definitive end of a very successful period for Egypt's gas industry.