Egypt will not pay compensation for gas halt, says official

Egypt will not compensate countries that import its natural gas for supply cuts due to the fourth recent attack on a Sinai pipeline Tuesday morning, an official said Wednesday.

Hassan al-Mahdy, head of the Holding Company for Natural Gas, said the government will attribute the halt to "compulsive reasons" recognized within international agreements, which will exempt it from paying importers.

This week's attack was the fourth on the pipeline since February, despite official statements that Egypt would increase security after the earlier attacks.

Mahdy also said his company addressed the Eastern Mediterranean Gas Co., which is in charge of exporting gas to Israel, after the second blast in April, saying all parties have the right to receive compensation from either the company or the government due to the blast.

However, the legal response, according to Mahdy, stated that the halt in gas flow did not occur at the government or the company's will and therefore does not require compensation.

International shareholders in Eastern Mediterranean Gas Company are filing legal claims against Egypt and demanding US$8 million in damages.

Translated from the Arabic Edition

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