EMG seeks US help in renewing Egyptian gas

EMG shareholders have asked the US government to pressure the Egyptians to renew the flow.

Israeli company Merhav MNF Ltd. has confirmed that the East Mediterranean Gas Co. Ltd. (EMG) will not resume supplies of natural gas to Israel on Friday. This is the third time that the resumption of gas supplies has been delayed, and unlike the previous occasions, EMG has given no date for the renewal of the gas flow.

Merhav MNF said, "The flow of gas will in all likelihood not be renewed at the weekend. EMG's shareholders have asked the governments of the US, Thailand, and governments in Europe to push the Egyptian government into speeding up the renewal of the flow."

Merhav MNF president and CEO Yosef Maiman owns 20.6% of EMG through Merhav and Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL). Other shareholders are Egyptian businessman Hussein Salem (28%), Thai national oil company PTT (25%), US businessmen Sam Zell and David Fisher (12%), the Egyptian government gas company EGAS (10%), and Israeli institutions (4.4%). The flow of gas was halted on February 5 after terrorists blew up the gas pipeline in Northern Sinai.

Ampal's share price fell 3.05% in trading on the TASE today to NIS 7.03.

Published by Globes, Israel business news - www.globes-online.com - on March 3, 2011

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

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