Egyptian gas deliveries resume - report

"Al Ahram" said the resumption does not imply exports will continue at the same deeply discounted prices.

Egyptian daily "Al Ahram" quotes an official from the Egypt Gas Holding Company that gas supplies to Israel and Jordan have been resumed after the pipelines were fixed.

The source added that although the gas is flowing to Israel and Jordan, this does not imply that the export of gas will continue at the same deeply discounted prices. He said that a meeting will take place in a few hours with East Mediterranean Gas Company (EMG) officials in order to tie the price of gas exports to international prices. EMG is responsible for supplying Egyptian natural gas to Israel.

"Al Ahram" added that an Egyptian delegation is currently in Jordan to discuss raising the price of gas exported to that country, so that it does not favor any country or company.

On Tuesday, EMG shareholder Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), controlled by Yosef Maiman, announced that the Egyptian National Gas Company (EGAS) began the testing and commissioning procedures necessary for the resumption of the commercial gas supply to EMG, and subsequently to EMG's Israeli customers. Ampal owns 12.5% of EMG.

Egyptian gas deliveries to Israel, Jordan, Syria, and Lebanon have been disrupted several times since early February, due to attacks on pipelines and facilities in Sinai. Egyptian gas exports, especially to Israel, has become a political issue since the ouster of former President Hosni Mubarak in February, and charges of corruption levied against Mubarak, his sons, and associates, and claims that the gas was sold at sharp discounts. The current Egyptian government is seeking to raise the price of its gas export.

Ampal's share price was unchanged on Nasdaq yesterday at $1.28, giving a market cap of $72 million, and rose 5.1% in early trading on the TASE today to NIS 4.31.

Published by Globes [online], Israel business news - - on June 9, 2011

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

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