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Repair Work in Egypt to Israel Gas Pipeline

Source: www.gulfoilandgas.com 3/3/2011, 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 that it was advised by East Mediterranean Gas Co. (EMG), in which Ampal has a 12.5% interest, as follows:

1- All repair work has been completed at the GASCO (the Egyptian gas transport company) metering station which is part of a pipeline leading to Jordan, that was damaged in a February 5th, 2011 explosion and subsequent fire.

2- Repair and testing of the GASCO system was to enable EGAS (the Egyptian national gas company) to resume gas deliveries to EMG, and thus to EMG's Israeli clients as well as to Jordan and Syria.

3- Due to a March 2nd, 2011 exchange of fire between suspected terrorists and Egyptian security forces at the GASCO site, testing of the repaired system was delayed even though neither casualties nor damage were reported.

4- It is not clear to EMG when pipeline testing will take place or when resumption of gas supply to EMG and its Israeli customers can be expected.

Ampal and the other EMG international shareholders are continuously monitoring developments, have already approached the Government of Egypt in the matter and requested their respective governments to do likewise, all in order to secure the earliest possible resumption of gas supply.

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