Egypt gas pipeline blast 311.
(photo credit: REUTERS)
US investors in the East Mediterranean Gas Company (EMG) have taken legal steps
against the Egyptian government to ensure gas flow resumes to Israel, Reuters
reported Monday. Supplies have been halted for more than a month following
explosions on Egypt’s side of the pipeline in the wake of the country’s
political turmoil and ouster of president Hosni Mubarak.
EMG partner EGI
notified the Egyptian government that it was seeking international arbitration
over what it contended was Egypt’s failure to protect its investment as
stipulated in a US-Egyptian agreement. EGI accuses the Egyptian government of
“failing to provide EMG with full protection and security” for its investment
and “refusing to resume delivery of gas to EMG.”
Report: Egypt seeks to double gas price to Israel
Egypt to resume gas supplies to Israel by Friday
“We don’t think there is
a political decision to stop gas exports to Israel, but rather a problem in the
decision-making process within the Egyptian government,” An Israeli official
told Reuters. The official said arbitration, which could lead to a ruling that
Egypt had violated its agreement and force it to pay a large compensation, could
take place in Washington within six months. EMG has invested $550 million in the
off-shore pipeline that connects El-Arish in Sinai to Ashkelon, and Egypt is
losing $4 million a day since gas deliveries were halted on April 27.
is owned by Egyptian businessman Hussain Salem, Egypt Natural Gas Co, Thailand’s
PTT Public Co. Ltd., EGI chairman Sam Zell, and Yosef Maiman through
Ampal-American Israel Corporation and his private company Merhav Ltd.