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

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Italian gas group Snam logo is seen outside its office in Rome, Italy, June 4, 2020. REUTERS/Guglielmo Mangiapane

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MILAN, Dec 2 (Reuters) - Europe's biggest gas pipeline group Snam (SRG.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 (DEDRp.TA) and U.S. major Chevron Corp (CVX.N) have both equity investments in EMG's top shareholder EMED.

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Reporting by Andrea Mandalà, edited by Jason Neely

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