Gas supplies to Israel cut after metering station in Egypt catches fire

Source: Ampal-American Israel Corporation

Ampal-American Israel Corporation (Nasdaq: AMPL) has been advised by East Mediterranean Gas Co.(EMG), in which Ampal has a 12.5% interest, that contrary to some media reports, EMG's gas pipeline from El-Arish, Egypt to Ashkelon, Israel is intact, and was not damaged by the explosion at a gas metering station in Egypt yesterday. 

The supply of gas to EMG, and therefore to EMG’s Israeli clients, has been interrupted by a fire in a facility not related to EMG. The gas supply to EMG is expected to resume within a week. 

As been advised by EMG, a metering station in a gas pipeline from Egypt to Jordan caught fire. The station is owned and operated by Gasco, the Egyptian gas transport company, which is a subsidiary of EGAS, the Egyptian national gas company (EMG's gas supplier). Gasco's station is not a part of the EMG pipeline system and is located approximately 30 kilometers (some 18.6 miles) away from EMG's site. 

Ampal has been advised by EMG, that due to the fire, EGAS has initiated its standard shut down procedure affecting gas transportation throughout the Sinai Peninsula, including Gasco's pipeline to EMG's site, in order to suffocate the fire in Gasco's Station and cool down the system. The cooling down procedure reportedly can take up to one week. 

Contrary to initial media reports neither EMG's site nor EMG's pipeline were damaged. 

EMG informed its Israeli customers of the shutdown, and awaits EGAS's announcement of the resumption of gas supply to EMG. EGAS informed EMG that it expects the gas supply to Israel to resume within a week. 

About Ampal: 

Ampal and its subsidiaries acquire interests primarily in businesses located in the State of Israel or that are Israel-related. Ampal is seeking opportunistic situations in a variety of industries, with a focus on energy, chemicals, communications and related sectors. Ampal’s goal is to develop or acquire majority interests in businesses that are profitable and generate significant free cash flow that Ampal can control.

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