Ampal-American Israel Corporation, a holding company in the business of acquiring and managing interests in various businesses, announced that it has been advised by East Mediterranean Gas Co. ("EMG"), in which Ampal has a 12.5% interest, that around 20:00 tonight there was an explosion along the Egyptian gas pipeline, approximately 10 kilometers (about 6 miles) west of Al Arish, due to an alleged terror attack. The pipeline 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).
Following the explosion EGAS has initiated its standard shut down procedure affecting gas transportation throughout the Sinai area and gas supply to major Egyptian industries and gas consumers in the Sinai including cement factories, power stations and homes in Al Arish, as well as exports of gas to Israel (through EMG) and Jordan.
The extent of the damage to GASCO's pipeline and the estimated repair period are unknown at this point. Neither EMG's site nor EMG's pipeline were damaged as the affected GASCO's pipeline is not a part of the EMG pipeline system.