Egyptian General Petroleum Corp. and Egyptian Natural Gas Holding Co. filed a request for arbitration against East Mediterranean Gas Co. over a deal to supply natural gas to Israel, EGPC's chairman said.

Egyptian energy companies, citing a trade dispute, have terminated a deal to supply Israel with natural gas in a step that may further erode bilateral ties strained by a popular revolt that toppled Egypt's pro-Israeli leader last year.

Egypt is reviewing the timetable for resuming gas exports to Israel and wants to negotiate more flexible contracts with foreign gas buyers, the Egyptian oil minister said.

Gas deliveries from Egypt to Israel have reached 90% of volumes prior to the cutoff on February 5 and will continue to ramp up this week, said Israeli energy industry sources.

Ampal-American Israel Corporation, which holds 12.5 per cent of the East Mediterranean Gas Company (EMG) that owns the pipeline, said the initial supply would be less than normal but would be ramped up 'on a daily basis' to reach the full supply.

Egyptian gas supplies to East Mediterranean Gas and its clients in Israel are expected to resume by March 4, Ampal-American Israel Corp said on Sunday.

Egyptian gas supplies to East Mediterranean Gas Co (EMG) and its Israeli clients were expected to resume later this month following delays in pipeline repair work, said Ampal-American Israel Corp.