[bratticus]

Ampal: Renewed Egyptian gas flow by end of month
Globes / May 17, 2011

Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) reported last night that the flow of natural gas from Egypt to Israel will be renewed by the end of the month. The flow was halted following a terror attack on the pipeline on April 27.

... This was the second terror attack on the Sinai pipeline. Following an attack on February 5, the gas flow to Israel was not resumed until March 16. The pipeline also serves Jordan, Lebanon and Syria.

[bratticus]

a month goes by since the 2nd explosion and...

Egypt Says Natural-Gas Export Pipeline May be Fixed in Two Weeks
SF Gate / May 25, 2011

Egypt's natural-gas pipeline is expected to be fixed within two weeks, an Egyptian Natural Gas Co. official said, a month after an explosion that suspended exports to the country's eastern neighbors.

... Unidentified gunmen last month bombed a monitoring room in the northern Sinai city of El-Arish, halting domestic supplies and gas exports. The ministry said at the time that the incident was an "act of sabotage" and that an investigation was underway to identify the perpetrators.

Meanwhile

Noble's Leviathan #2 Disappoints
Zacks Equity Research / May 17, 2011

Noble Energy Inc. (NBL - Analyst Report) said that its drilling operations at the Leviathan #2 well located offshore Israel witnessed water flowing to the sea floor from the wellbore, indicating the absence of any hydrocarbons in the produced water. This led Noble to conclude that current location and wellbore are unsuitable for drilling, bringing the drilling operations at the well to a halt.

[bratticus]

Jordan's King Abdullah visits Egypt
AFP via The Egyptian Gazette / May 24, 2011

... King Abdullah's first visit to Egypt since Mubarak's ouster comes as relations between the two Arab states are strained by Cairo's insistence upon renegotiating its contract to export gas to the Hashemite kingdom.

Prior to an April attack on the gas pipeline between the two countries, Jordan had been importing enough Egyptian gas – 6.8 million cubic metres per day – to supply 80 percent of its electricity demand.

Under the terms of the 14-year deal signed in 2002, Jordan had been paying Egypt only half of the prevailing market price for the gas. ...

Military council's Tantawi receives Jordanian king
DPA / May 24, 2011

Jordan's king arrived in Cairo on Tuesday for a short visit to Egypt during which he will visit Field Marshal Hussein Tantawi, head of Egypt's ruling military council.

King Abdullah II will discuss recent developments of the Middle East peace process and the situations in Syria, Yemen and Libya. The two leaders will also discuss ways to bolster bilateral relations.

They will discuss Egyptian natural gas exports to Israel and the electricity link between Egypt and Jordan. ...

[bratticus]

Ampal-American Israel Corporation Debentures ["credit rating"] Downgraded to Baa3 With a Negative Outlook
Fundamental data is provided by Zacks Investment Research, market data is provided by AlphaTrade. , and Commentary and Press Releases provided by Quotemedia via GlobeNewswire via iStockAnalyst / May 26, 2011

Ampal-American Israel Corporation (Nasdaq: AMPL), a holding company with experience in acquiring interests in various businesses with emphasis in recent years on energy, chemical and related fields, announced today that Midroog Ltd. (an affiliate of Moody's Investors Service) ("Midroog") has removed Ampal's Series A, Series B and Series C Debentures (the "Debentures") from Midroog's "Watchlist" and has downgraded the Debentures' ratings by two notches, to BAA3 from BAA1 with a negative outlook. The Debentures are listed and traded on the Tel Aviv Stock Exchange

Midroog announced in its report that in January 2011 it had placed the Debentures' ratings on Midroog's "Watchlist" due to the destabilization of the political and financial environments in the State of Egypt. In March 2011, the Debentures' ratings were downgraded, from A3 to BAA1, while keeping them on Midroog's "Watchlist", all due to the on going uncertainties with regard to the ability of East Mediterranean Gas Company S.A.E. ("EMG"), in which Ampal has a 12.5% interest, to continuously supply gas.

Midroog noted that the current downgrading of the Debentures' ratings is due to the increase in the risk factors of Ampal's holding in EMG, as EMG constitutes 65% of Ampal's holdings' book value and its "Event Risk", as defined by Midroog, is increasing due to the following: on April 27, 2011, gas supply from Egypt to Israel was interrupted again, due to a terror attack on the Egyptian part of the gas pipeline, and according to Ampal's announcements, gas supply is expected to resume by the end of May.

Well guess what? You ran out of May!

The current interruption in gas supply follows a 5 week gas supply interruption, which occurred during March-April 2011, under similar circumstances. Midroog also noted that in April 2011, there was another attempt to sabotage the pipeline, and that such attempt failed. Tpipelinehe reoccurrence of such events implies an increase of the "Interruption Risk" associated with EMG's business. Midroog cannot estimate the likelihood of the reoccurrence of such terror attacks.

Ampal informed Midroog that the Egyptian government is taking additional substantial security measures in order to thoroughly secure the Egyptian gas pipeline, which Midroog noted in its report.

No they're not. Egyptians are keeping the gas off until they get more money for it.

... Midroog noted that in the current rating it took into consideration the facts that EMG enjoys several business advantages among them being an increase in natural gas demands in Israel, attractive prices compared to local Israeli alternatives (even after the increase in the gas prices by EMG on 2009) and the economics and geopolitical importance to Egypt in maintaining gas sales to Israel. ...

Wonder what could be driving up the demand for gas? Oh, look it's the happy motoring joke of 2011:

Israeli electric car pioneer unveils price plans
The Associated Press via Sacramento Bee / May 17, 2011

Electric car company Better Place has unveiled the pricing of its subscription packages ahead of the rollout of the world's first nationwide battery-charging grid.

The company said Tuesday the base price for its flagship Renault Fluence Z.E. electric car will be 123,000 shekels, or $34,670.

It will offer various subscriptions depending on how much a user drives. Monthly costs will range from 1,090 shekels ($310) for 12,000 miles (20,000 kilometers) a year up to $450 for 20,000 miles (30,000 kilometers) a year.

The company said it will also be offering a three-year package offering unlimited mileage for 157,500 shekels ($44,530).

The company says the overall costs are up to 20 percent lower than a gasoline-powered car. ...

... because after all they make electricity from cheap, reliable Egyptian natural gas, right?

[bratticus]

Ampal-American Drops to Two-Week Low on Moody’s Downgrade
By Sharon Wrobel / Bloomberg / May 29, 2011

... The company’s series A, B and C debentures were lowered two levels to Baa3 from Baa1 with a negative outlook at Midroog and removed from “watchlist,” according to a statement filed to the Tel Aviv Stock Exchange on May 26. The securities were downgraded because of an “increase in the risk factors” from Ampal-American’s stake in East Mediterranean and interruptions in supply at a pipeline that transports natural gas from Egypt to Israel, according to the statement. ...

Israel orders temporary halt at natgas field Leviathan
Reporting by Ari Rabinovitch; Editing by Steven Scheer and Jon Loades-Carter / Reuters / May 29, 2011

Israel's Infrastructure Ministry said on Sunday it has instructed U.S.-firm Noble Energy not to resume drilling at the Leviathan natural gas field until it provides details about an earlier mishap, sending energy shares sharply lower.

... Production at Leviathan is expected to begin around 2017, and it was unclear if this would affect the schedule, an official at the Infrastructure Ministry said. ...

Cheap, reliable natural gas: the best thing to smoke in an opium pipe to induce delusions and hallucinations of an electric car future.

InnoSave Greens Big Electric Motors to Save Energy Costs
Maurice Picow / Green Prophet / May 28th, 2011

... A new Israeli company InnoSave is finding solutions for electric motors, letting them run on less electricity and without the need to operate on a “combination” of both AC and DC current power. ... a 30% electricity savings over electric motors not using these concepts. ...

How about ones that run on 99% less power? They are headed that way now.

Oh wait you can always just generate the electricity for the electric cars by burning diesel, right?

[bratticus]

Jordan, Egypt still apart on gas deal
By Taylor Luck / The Jordan Times / May 29, 2011

AMMAN - Despite weeks of negotiations, Amman and Cairo have yet to reach an agreement on resuming natural gas supplies to Jordan, a senior energy official has said.

According to Minister of Energy and Mineral Resources Khaled Toukan, talks between Jordan and Egypt are ongoing following an April 27 attack in Al Arish disrupted supplies - the second attack on the Arab Gas Pipeline in less than three months.

In a statement issued through the Egyptian press on Thursday, Cairo’s ministry of oil indicated that the hold-up in resuming gas supplies to the Kingdom was over gas quantities rather than higher prices, which have become a stipulation in resuming supplies to the Kingdom.

... Prior to the attack, Jordan received 150 million cubic feet of natural gas each day from Egypt - half of the amount it received in 2009 - and well below the 240 million cubic metres stipulated in the 12-year agreement, which runs through 2016.

Jordanian energy officials now hope to resume supplies to an “urgent” 200 million cubic metres per day in order to alleviate pressure on the energy sector. ...

[bratticus]

US firm seeks legal action to ensure Egypt keeps gas flowing to Israel
Reuters via Al Arabiya News / May 30, 2011

US investors in the East Mediterranean Gas Co (EMG) have taken legal steps against the Egyptian government to ensure gas flow resumes to Israel, an official in a partnering firm with EMG told Reuters on Monday.

The American firm EGI which is also a partner in EMG said that it was seeking international arbitration over what it contended was Egypt's failure to protect its investment as stipulated in a US-Egyptian agreement.

EMG which exports Egyptian natural gas to Israel had its work disrupted in late April when supplies were halted for more than a month following explosions on Egypt's side of the pipeline in the wake of the country's political turmoil and ouster of President Hosni Mubarak.

In a letter to the Egyptian government, EGI accused Egypt of "failing to provide EMG with full protection and security" for its investment and "refusing to resume delivery of gas to EMG."

There was no immediate official comment from Egypt.

The official who spoke on the condition of anonymity told Reuters that arbitration, which could lead to a ruling that Egypt violated its agreement and force it to pay a large compensation, could take place in Washington DC within six months.

"We don't think there is a political decision to stop gas exports to Israel, but rather a problem in the decision making process within the Egyptian government," he added.

The official said EMG invested $550 million in the off-shore pipeline that connects al-Arish, Egypt to Ashkelon, Israel.

Israeli Prime Minister Benjamin Netanyahu on Monday alluded to a weaker Egyptian state when he said that Egypt was having trouble maintaining control in the Sinai Peninsula, where saboteurs had blown up the pipeline, disrupting gas flows to Israel and Jordan.

... Last month, Egypt’s Prime Minister Essam Sharraf said that the government was in the process of reviewing the country’s gas contracts with all of Israel and Jordan in a bid to boost the country’s returns to between three billion to four billion dollars. ...

Petroleum official: No compensation in wake of pipeline explosion
Ashraf Fekry / Al-Masry Al-Youm / May 31, 2011

There is no reason for the company responsible for natural gas exports to Israel to file a lawsuit against the Egyptian government, a senior Egyptian Petroleum Ministry official has said.

The East Mediterranean Gas Company (EMG) experienced financial losses as a result of the government's decision to suspend pumping operations.

Authorities cut supplies to Israel after bombings at the Egyptian gas pipeline in the Sinai in February and April. Two companies holding shares in EMG threatened international arbitration against the government if suspension continued.

... The [anonymous] official confirmed that the ministry would not be paying any compensation to the EMG partners or to the countries benefiting from export operations, including Israel, Jordan, Syria and Lebanon, as Egypt was not responsible for the suspension of pumping operations. ...

------
I'm giving you a long look--every day I scrap the book.

[bratticus]

Dispute Grows as Egyptian Gas Is Still Not Flowing to Israel
By ETHAN BRONNER / NYT / June 1, 2011

JERUSALEM — More than a month after saboteurs blew up an Egyptian pipeline supplying natural gas to Israel, the line is repaired but gas is not flowing and foreign shareholders of the company suspect politics to be the reason. They are threatening legal action against Egypt.

American and Thai shareholders in the pipeline have demanded urgent consultations to avoid resorting to binding arbitration based on trade treaties. One letter to Egyptian ministries from an American company with an Israeli chairman threatens a lawsuit of $8 billion.

... The pipeline supplies not only Israel but also Jordan, Lebanon, Syria and some Egyptian companies. None have had their gas supply restored since the April 27 explosion, and Egypt is losing millions of dollars a day. ...

Egypt: No gas until pipeline secured
Oil minister says Cairo will not resume natural gas exports to Israel, Arab countries until bombed pipeline undergoes 'security work'
Associated Press via Yedioth Internet / June 4, 2011

... Abdallah Ghorab told reporters after Thursday's meeting of the Gas Exporting Countries' Forum that the pipeline near Egypt's border with Israel "needs security work." ...

[bratticus]

Ampal launches arbitration over Egypt gas halt
Writing by Maayan Lubell; Editing by Will Waterman / Reuters / May 31, 2011

Ampal American Israel Corp (AMPL.TA)(AMPL.O) has started international arbitration proceedings over the halt in gas flow from Egypt to Israel, a statement from the company said on Tuesday.

... Ampal has joined EGI-Fund, PTT International and other international shareholders in formal steps toward arbitration under a U.S.-Egypt bilateral treaty for investment protection, the statement said.

... Ampal CEO Yosef Maiman said he hoped EMG would not have to pursue litigation against the government of Egypt for claims "which could be in excess of $8 billion".

[bratticus]

Jordan, Egypt to examine natural gas agreement
The Jordan Times / June 5, 2011

... The attack has forced the country’s power plants onto their heavy oil and diesel reserves, costing Jordan some $3 million per day and leading authorities in Amman to explore liquefied gas imports as a long-term alternative.

The Kingdom imports 96 per cent of its energy sources at a cost of around one-fifth of the gross domestic product.

... Meanwhile, Palestinian Minister of Energy and Natural Resources Omar Kittaneh expressed appreciation of Jordan’s electricity supplies to Jericho at prices similar to those given to local companies, Petra reported.

During a meeting with Kittaneh, Toukan said the agreement will prevent electricity outages in the West Bank, adding that the Jordanian government will bear the difference in the prices, in support of the Palestinian Authority.

[bratticus]

Iraq boosts oil exports to Jordan
By JAMAL HALABY / Associated Press via Bloomberg / June 3, 2011

... Rising oil prices have swelled Jordan's budget deficit to a record $2 billion this year. The shortfall is likely to rise further because of an increasing energy bill.

Jordan switched its power stations to oil when cheaper Egyptian gas was halted in April because of sabotage.

[bratticus]

Egypt to test gas flow to Israel, Jordan
Reuters via TradeArabia / June 07, 2011

Egypt will begin experimental pumping of gas to Israel and Jordan this week after supplies were halted for more than a month, a newspaper reported on Monday, citing Egyptian oil ministry officials.

But I've heard this story many times this year so only time will tell.

[bratticus]

Minister: Egypt-Jordan gas dispute will not need international arbitration
Ashraf Fekry / Al-Masry Al-Youm / June 7, 2011

Disagreements over the price for Egyptian natural gas exports to Jordan will not require international arbitration, according to Egyptian Minister of Petroleum Abdullah Ghorab.

A final draft of the contract will be composed soon in accordance with world rates and Egypt’s interests, the minister said.

... Speaking to Al-Masry Al-Youm, Ghorab stressed that the Egyptian government would not resume gas exports until setting prices that conform to world rates, and thus be on firmer ground to address the public perception that Israel receives favorable rates. ...

[bratticus]

Egypt Natural-Gas Exports to Resume Next Week, Jordan Times Says
By Nayla Razzouk / Bloomberg / June 9, 2011

Egypt’s natural-gas deliveries to Jordan are due to resume next week about a month after an explosion on the Egyptian pipeline network, the Jordan Times said, citing Energy Minister Khalid Touqan.

The halt to Egyptian gas shipments twice this year after sabotage attacks on the network has prompted Jordan to explore the import of liquefied natural gas and the installation of an offshore gas terminal in the southern Red Sea port of Aqaba, according to the newspaper. ...

[bratticus]

Egypt Resumes Gas Supplies To Israel, Jordan
RTT / June 10, 2011

(RTTNews) - Egypt has resumed its gas supplies to Israel and Jordan after a 45-day gap caused by an attack on a pipeline in the Egyptian side of the Sinai desert, Egyptian officials said Friday.

... A previous explosion had rocked the pipeline on February 5, when the popular unrest that eventually ousted President Hosni Mubarak from power was progressing. The explosion had disrupted the gas flow to Israel and Jordan until March 15.

45 days without gas + 38 days without gas = 83 days with gas of the first 161 days of the year. The gas has been off for more than half the days this year.

[bratticus]

Natural Gas Issues Inflame Palestinian-Israeli Dispute
Written by Charles Kennedy / OilPrice.com / June 16, 2011

... Earlier this week Israel's Ministry of National Infrastructure authorized Noble Energy, a crude oil and gas exploration U.S. based company based in New York, to begin developing a natural gas field off the Gaza Strip coastline, the Palestine News Network reported.

In authorizing the development work Israel's Ministry of National Infrastructure maintains that the decision to grant approval was made in following Israel’s severe shortage of natural gas supplies in the wake of cessation of natural gas supplies from Egypt following a 27 April explosion damaged a gas terminal at El Arish in Egypt’s Sinai Peninsula, a key link in the pipeline that carried natural gas from Egypt's Nile Delta to Israel. ...

[bratticus]

Sinai explosion latest disruption in gas supply
By Taylor Luck / The Jordan Times / July 5, 2011

AMMAN - Jordan’s natural gas supplies from Egypt were cut late Sunday in what marked the third act of sabotage on the Arab Gas Pipeline this year.

[babystrangeloop]

Egyptian pipeline hit by fourth explosive attack since January
Operator to seek $8bn from Cairo over disruption to gas exports after gunmen blow up terminal a week on from last attack
Jack Shenker in Cairo / Guardian UK / July 12, 2011

A large explosion has rocked Egypt's main gas pipeline through the Sinai peninsula, cutting off supplies to neighbouring Israel and Jordan for the fourth time this year.

Masked gunmen entered a pipeline distribution station near the city of al-Arish on Monday night, according to Egypt's official news agency. The saboteurs reportedly ordered security guards to leave before blowing up the terminal, causing 10-metre-high flames to leap into the air. By Tuesday morning emergency crews had brought the blaze under control.

[babystrangeloop]

Oh, could this be the big one?

Egyptian gas not expected to return soon
By SHARON UDASIN / The Jerusalem Post / July 17, 2011

Following the fourth gas explosion to hit the Egyptian pipeline in five months on Tuesday, experts have agreed that the resumption of the natural gas flow will not be quick this time, as the damage was quite severe. ...

Oh, I wonder if there could be any repercussions?

Moody's reviews Israel Electric Corporation for possible downgrade
Press Release from Moody's Investors Service via Zayaw / July 18, 2011

London, 18 July 2011 -- Moody's Investors Service has placed the BAA2 rating of Israel Electric Corporation Limited (IEC) and the

BAA2 rating of its USD2.0 billion Global Medium Term Note Programme on review for possible downgrade following the announcement by the company that it expects "financial hardship" in financing the cost of additional fuel following attacks on the natural gas pipeline from Egypt.

Oh, I'm sure they'll think of some way to make this all OK again...

Natural gas supplier to sue Egypt over breach of energy contract
World Tribune / July 18, 2011

LONDON — A regional natural gas supplier plans to seek $8 billion in damages for Egypt's failure to honor an energy contract with Israel. ...

That'll fix everything, I'm sure.

[babystrangeloop]

Israeli ministries battle over using fuel oil at power plants
Platts / July 27, 2011

... The IEC has said that it will need to import 300,000 mt of diesel fuel to offset the loss of Egyptian gas supplies, but also wants to use increased quantities of fuel oil. The excise tax on diesel fuel is currently $950/mt. ...