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Gas Supply to Israel will be Resumed Later this Month

Source: www.gulfoilandgas.com 2/16/2011, Location: Africa

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Ampal-American Israel Corporation, a holding company in the business of acquiring and managing interests in various businesses, announced today that the gas supply to East Mediterranean Gas Co. ("EMG"), and therefore to EMG's Israeli Clients, is expected to resume later this month. Ampal has a 12.5% interest in EMG.

The Egyptian National Gas Company ("EGPC") informed EMG that the delay is to due to a hold-up in repair work on a GASCO (the Egyptian gas transport company, and EGAS subsidiary) pipeline.

This information updates Ampal's previous announcements dated February 6, 2011 and February 8, 2011. Ampal had announced that a small portion of a GASCO pipeline serving EMG was damaged as a result of an explosion and subsequent fire in a metering station along a separate GASCO owned and operated gas pipeline from Egypt to Jordan. At the time, GASCO was expecting repair work to conclude and gas supply to resume on February 17, 2011. As previously announced, neither EMG's site nor EMG's pipeline were damaged as the affected GASCO station is not a part of the EMG pipeline system and is located some 30 kilometers (about 18.6 miles) from the EMG site.

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