Thai PTT to buy 25 pct of Egypt gas pipeline firm

BANGKOK, Nov 29 (Reuters) - PTT PCL PTT.BK, Thailand's top energy firm, said on Thursday its wholly-owned PTT International Co had signed a contract to buy a 25 percent stake in an Egyptian gas pipeline company for $487 million.

PTT said in a statement the subsidiary would buy 36.75 million shares in East Mediterranean Gas Company S.A.E. (EMG) from Mediterranean Gas Pipeline Ltd at $13.25 per share.

PTT would give financial support to the subsidiary for the purchase and the transaction was expected to be completed in middle of December, it said.

The investment in Egypt, a leading exporter of liquefied natural gas, was in line with PTT's strategy to expand overseas as Thailand looked for new gas supplies to meet rising domestic demand over the next few years, it said.

EMG, registered in the Free Zone of Egypt, is the only company having the right to export gas from Egypt to Israel and is building a $469 million,natural gas pipeline between the two countries, it said.

EMG has signed an agreement with the Egyptian General Petroleum Corporation and state-owned Egyptian Natural Gas Holding Company to buy about 677 million cubic feet per day (MMCFD) for 15 years, the statement said.

Its main customer was the Israel Electric Corporation, the national power company which would buy about 206 MMCFD for 15 years, it said.

At 0315 GMT, PTT shares were up 1.65 percent at 370 baht, while the main Thai index was up 1.43 percent. ($1 = 33.86 Baht) (Reporting by Khettiya Jittapong, editing by Michael Battye)