The Ministry of National Infrastructures has announced that Egypt has resumed natural gas deliveries to Israel. Deliveries began gradually on Thursday night, beginning with small quantities to test the pipeline, with continuous flow beginning later. Deliveries to Israel began after Egypt resumed deliveries to Jordan last week.
The resumption of Egyptian gas deliveries should lower, or at least delay a pending 5% electricity rate hike.
The quantity of gas deliveries is still not clear. During this year, Egypt's gas deliveries have been just 30% of the contractual amounts.
Egypt's natural gas pipelines and facilities in Sinai have been attacked several times this year by Bedouin hostile to the Egyptian government. The latest attack was in September. Gas deliveries to Israel were halted altogether after an attack in July. The first attack in February came shortly after President Hosni Mubarak was ousted from power.
Egypt supplies 40% of the gas needs of Israel Electric Corporation (IEC) (TASE: ELEC.B22). The lack of Egyptian gas forced the Public Utilities Authority (Electricity) to raise electricity rates by almost 10% in July, and another price hike is due next month.
Egypt supplies gas to Israel via East Mediterranean Gas Company (EMG) in which Yosef Maiman owns 20.6% through Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) and his private company Merhav Group
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2011
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