Egyptian gas resumption delayed again

Ampal: EMG should resume gas deliveries later this month.

Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) today announced that the gas supply to East Mediterranean Gas Company (EMG), and therefore to EMG’s Israeli customers, should resume later this month. Deliveries were supposed to resume tomorrow.

The Egyptian National Gas Company notified EMG that the delay is to due to a hold-up in repair work on a Gasco (Egyptian gas transport company) pipeline to Jordan, damaged by an explosion at a gas metering station on February 5. Although the damaged pipeline is not part of EMG's pipeline system, the company also closed its gas pipeline to Israel. The damaged Gasco station is located about 30 kilometers from the EMG site.

Ampal owns 12.5% of EMG.

In a separate development, "USA Today" reports that leaders from the April 6 Youth Movement want the interim military government to cut off natural gas shipments to Israel. The organization says that gas shipments to Israel must cease because the "Zionist entity" is mistreating Palestinians, and that it also disliked US support for Israel.

Published by Globes [online], Israel business news - - on February 16, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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