Gas flow from Egypt to Israel resumes

CPI up 0.5% in October as housing prices fall

The supply of gas was halted for six weeks after an explosion in the pipeline.

The flow of natural gas from Egypt to Israel resumed last night, after being cut off for six weeks. Earlier yesterday, at around 15:00, Egypt renewed the flow of gas to Jordan. The supply of gas to both countries was halted on February 5 after an explosion on the Egyptian side of the pipeline to Jordan.

Egypt has informed Jordan of its intention to raise the price of the gas it supplies from $3 per million btu to $6-7, which it claims reflects market prices. The price hike being demanded of Jordan raises the possibility that a similar demand will be made of Israeli consumers. The Egyptians are currently committed to supplying gas to Israel Electric Corporation (IEC) and Israel Corporation (TASE: ILCO) at $4.5-5 per million btu. EMG (Eastern Mediterranean Gas) signed a $15 billion gas supply agreement with IEC, Israel Corp., the private power producer Dorad, and smaller business customers.

Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2011