Substantial progress has been made in the negotiations on an agreement for the transportation of natural gas from Egypt. Sources inform ''Globes'' that East Mediterranean Gas Co. Ltd. (EMG) and Israel Natural Gas Lines Company Ltd. have reached understandings on the commercial terms for the natural gas transportation. Unless there is a last-minute change, the board of Natural Gas Lines Company, headed by chairman Ohad Marani, will approve the agreement at its upcoming meeting.
The commercial flow of natural gas is scheduled to begin by early May. EMG and Natural Gas Lines Company are due to sign a 15-20 year contract and settle all issues relating to the carrying of natural gas to Israeli customers.
As "Globes" reported, the signing of an agreement was delayed because of last-minute disagreements when Natural Gas Lines Company asked EMG to provide millions of shekels in guarantees against possible disruptions in deliveries. The parties also disagreed over who would have jurisdiction in contractual disputes - a court in Israel or a court in another country.
EMG and Natural Gas Lines Company decline to disclose details of the agreement, but they have apparently agreed on a minimum guarantee of several millions shekels for gas deliveries. Natural Gas Lines Company confirmed in response, "There has been progress in the negotiations, and the matter will be brought before the board in a few days." EMG partner Merhav MNF Ltd. declined to comment.
Joseph (Yossi) Maiman is a shareholder in EMG through his private company Merhav MNF and through Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL).
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2008
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