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Egypt’s EGPC Files Arbitration Case in Israel Gas Dispute

Egyptian General Petroleum Corp. and Egyptian Natural Gas Holding Co. filed a request for arbitration against East Mediterranean Gas Co. over a deal to supply natural gas to Israel, EGPC’s chairman said.

The two state-run companies filed the request on May 3 after East Mediterranean, or EMG, breached the terms of the contract by delaying payments for gas, which it exports to Israel, Hani Dahi said in an interview today in Cairo.

EGPC and EGAS last month notified EMG, in which Ampal-American Israel Corp. owns a 12.5 percent stake, of the termination of the contract. Ampal and other investors in EMG on May 3 said they had filed an arbitration request against Egypt over the contract’s termination.

EMG hasn’t received any notification that it will enter arbitration, according to an EMG official who asked to remain anonymous in line with company policy.

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