East Mediterranean Gas (EMG) – the multinational body responsible for the operation of the now defunct gas pipeline from Egypt to Israel – has been awarded $324 million from two Egyptian national gas companies, lawyers for the firm reported on Tuesday.
With the conclusion of arbitrations at the International Chamber of Commerce on Thursday, EMG is now entitled to receive the $324m. sum, as well as a substantial portion of the company's legal fees and arbitration costs, from the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Corporation (EGPC), a statement from the attorneys said.
The announcement comes two days after the Israel Electric Corporation revealed similar news, in which the International Chamber of Commerce awarded the Israeli company $1.76 billion from the same two firms, due to damages incurred from a cessation in gas supply in 2012.
In 2008, EGPC and EGAS began selling gas to the IEC, through the EMG pipeline – supplying the country with about 40 percent of its natural gas provisions. Yet saboteurs began thwarting the flow through Sinai pipeline explosions in 2011, which ultimately led the Egyptian government to terminate the gas sale agreement with Israel in April 2012.