EMG's Gas Pipeline Intact
Ampal-American Israel Corporation (Nasdaq: AMPL), a holding company in the business of acquiring and managing interests in various businesses, announced today that it has been advised by East Mediterranean Gas Co.("EMG"), in which Ampal has a 12.5% interest, that contrary to some media reports, EMG's gas pipeline from El-Arish, Egypt to Ashkelon, Israel is intact, and was not damaged by the explosion at a gas metering station in Egypt yesterday. The supply of gas to EMG, and therefore to EMG’s Israeli clients, has been interrupted by a fire in a facility not related to EMG. The gas supply to EMG is expected to resume within a week.
As been advised by EMG, a metering station in a gas pipeline from Egypt to Jordan caught fire. The station is owned and operated by Gasco, the Egyptian gas transport company, which is a subsidiary of EGAS, the Egyptian national gas company (EMG's gas supplier). Gasco's station is not a part of the EMG pipeline system and is located approximately 30 kilometers (some 18.6 miles) away from EMG's site.
Ampal has been advised by EMG, that due to the fire, EGAS has initiated its standard shut down procedure affecting gas transportation throughout the Sinai Peninsula, including Gasco's pipeline to EMG's site, in order to suffocate the fire in Gasco's Station and cool down the system. The cooling down procedure reportedly can take up to one week.
Contrary to initial media reports neither EMG's site nor EMG's pipeline were damaged.EMG informed its Israeli customers of the shutdown, and awaits EGAS's announcement of the resumption of gas supply to EMG. EGAS informed EMG that it expects the gas supply to Israel to resume within a week. About Ampal: Ampal and its subsidiaries acquire interests primarily in businesses located in the State of Israel or that are Israel-related. Ampal is seeking opportunistic situations in a variety of industries, with a focus on energy, chemicals, communications and related sectors. Ampal’s goal is to develop or acquire majority interests in businesses that are profitable and generate significant free cash flow that Ampal can control. For more information about Ampal please visit our web site at www.ampal.com. Safe Harbor Statement Certain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) and information relating to Ampal that are based on the beliefs of management of Ampal as well as assumptions made by and information currently available to the management of Ampal. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "intend," "plan," and similar expressions as they relate to Ampal or Ampal's management, identify forward-looking statements. Such statements reflect the current views of Ampal with respect to future events or future financial performance of Ampal, the outcome of which is subject to certain risks and other factors which could cause actual results to differ materially from those anticipated by the forward-looking statements, including among others, the economic and political conditions in Israel, the Middle East, including the situation in Iraq, and the global business and economic conditions in the different sectors and markets where Ampal's portfolio companies operate. Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcome may vary from those described herein as anticipated, believed, estimated, expected, intended or planned. Subsequent written and oral forward-looking statements attributable to Ampal or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. Please refer to the Ampal's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of these and other risks that could cause results to differ materially. Ampal assumes no obligation to update or revise any forward-looking statements.
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