EMG increases gas flow from Egypt

One week after signing a new agreement with the Egyptian government, Egypt's East Mediterranean Gas Co. (EMG) has increased the flow of gas to the Israel Electric Corporation (IEC) (TASE: ELEC.B22) to 1.5-1.6 billion cubic meters of gas per year and this amount should rise, according to the agreement, to 1.7 billion cubic meters.

Joseph Maiman owns 20% of EMG through Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL)and his private company Merhav MNF Ltd., and Israeli institutional investors own 4.4%.

The increase in flow represents a strong indication of EMG's renewed commitment to Israel. This renewed commitment comes against the background of the finds in the Dalit and Tamar wells, which could be producing gas by 2012.

Published by Globes [online], Israel business news - www.globes-online.com - on June 7, 2009