Europe’s largest gas pipeline group buys 25 percent of Israel-Egypt company

Europe’s largest gas pipeline group, Snam, announced that it had purchased a 25 percent stake in the East Mediterranean Gas Company (EMG), which owns a pipeline delivering Israel-based natural gas to Egypt, Reuters reported on Thursday.

The 90-kilometer-long (56-mile-long) pipeline, which stretches from Ashkelon on the southern Israeli coast to Al-Arish in Egypt’s receiving terminal in the Sinai Peninsula, is dubbed the “peace gas pipeline.” It forms one of the major energy arteries for Egypt, noted the report.

“Snam said it paid around $50 million for the stake, which it took over from Thai energy company PTT Energy Resources Co,” said the report.

It noted that Israel’s Delek Drilling company and the major American Chevron Corp company both have equity investments in EMG’s top shareholder, EMED.