Snam buys stake in 'Peace Gas Pipeline' between Israel and Egypt

The 90 km-long Arish-Ashkelon gas pipeline, part of the so-called Peace Gas Pipeline, is one of the main energy supplies sources for Egypt

  
Image used for illustrative purpose. Workers build a pipeline for transporting natural gas to Israel in north Delta Nile, 300 km (186 miles) north of Cairo.

Image used for illustrative purpose. Workers build a pipeline for transporting natural gas to Israel in north Delta Nile, 300 km (186 miles) north of Cairo.

REUTERS/Nasser Nuri

MILAN- Europe's biggest gas pipeline group SnamSRG.MI said on Thursday it had completed the acquisition of a 25% stake in East Mediterranean Gas Company (EMG), which owns a pipeline between Israel and Egypt, marking its entrance into a high gas demand area.

The 90 km-long Arish-Ashkelon gas pipeline, part of the so-called Peace Gas Pipeline, is one of the main energy supplies sources for Egypt, linking the Israeli terminal of Ashkelon to the Egyptian receiving station of Al-Arish.

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

Israeli's Delek Drilling and U.S. major Chevron Corp have both equity investments in EMG's top shareholder EMED.

(Reporting by Andrea Mandalà, edited by Jason Neely) ((andrea.mandala@thomsonreuters.com; +390680307738;))


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