“Official” Egyptian TV says a natural gas pipeline feeding Israel and Jordan exploded and caught fire. “Subversive elements” are to blame. It was an “act of terror” carried out by “foreign hands” is the government line, and the Jerusalem Post quotes state TV saying “masked men set off detonation…in Sinai…,”
The fire is out. There were no deaths or injuries. About 40% of Israel’s gas is imported from Egypt . Source: Bloomberg
Neil Cavuto is on Fox this minute and says it is not terrorism, a leak caused the eruption. Egypt is confirming that now – so “official television” jumped to conclusions, perhaps. An analyst is on with Cavuto says Egypt is not a big player in Energy and this should not have an impact on the stock market.
A group of masked men set off a detonation at a gas terminal near the Israel-Egypt gas pipeline in El-Arish…setting off a massive fire.
More from the Bloomberg link above:
The line to Israel started in 2008 and can supply up to 7 billion cubic meters a year, according to Israel’s Department of Natural Infrastructure. Israel imported 60 billion cubic feet of gas in 2009, U.S. Energy Department data show.
Egypt supplies Israel with gas under a 15-year contract and is expected to eventually deliver almost 1 trillion cubic feet. Israel imports about 85 percent of its energy.
Israeli National Infrastructure Minister Uzi Landau said Feb. 1 that events in Egypt should heighten concern over the supply of natural gas to Israel, and the country should move quickly to develop its own gas sites.
Supplies to Jordan are also halted at this time.