Sinai gas pipeline bombed for 12th time

Natural gas deliveries to Israel have again been suspended.

Saboteurs today blew up a pipeline in northern Sinai, near El Arish that supplies gas to Israel and Jordan, according to Egyptian security officials. This is 12th attack in the past year. Gas deliveries were suspended following the attack.

Gas deliveries to Israel were partly resumed a month ago, without any media fanfare, because the Egyptian authorities wanted to keep the matter quiet. Egypt supplies gas to Israel via East Mediterranean Gas Company (EMG), in which Yosef Maiman owns 20.6%, 12.5% though Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), and the rest through his private company Merhav Group).

Masked gunmen planted explosives under the pipeline, causing a massive fire. Sources say the attack on the pipeline came the day after an Islamist leader from the area died in his prison cell in Cairo. Interior Ministry officials said he died from natural causes.

Ampal's share price fell 2.4% in morning trading on the TASE to NIS 1.28, following the news, after rising 2.9% on Nasdaq on Friday to $0.38, giving a market cap of $21 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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