The East Mediterranean Gas Co. (EMG) has been preparing for international
arbitration for compensation from the Egyptian government in wake
of five attacks on the Arab Gas Pipeline in 2011.
EMG, with shareholders in
Israel, Thailand and the United States, said Egypt had failed to honor its
obligation to supply gas to the Israeli energy market.
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Under the contract, arbitration would take place in a court in the
United States. But EMG would be required to first try to settle claims directly with Egypt before turning to arbitration.
Nimrod Novik, a former Israeli official and member of EMG's board of
directors, said the suspension of gas has turned Egypt into an unreliable
energy supplier. Novik said EMG's claim has already been relayed to the
government in Cairo.