El-Arish blast causes shut off of natural gas flow to Israel and Jordan; Egyptian security officials say explosives were detonated at terminal.
Egypt's natural gas company said the fire was
caused by a gas leak, but a local security official said an explosive device
was detonated inside the terminal and the regional governor said he suspected
sabotage.
The blast and fire at the gas terminal in the Sinai town
of El-Arish did not cause casualties.
Infrastructure Minister Uzi Landau said in a
statement Saturday that Israel is prepared for unexpected disruptions in the
supply of natural gas from Egypt, and that a drill was held last June in which
exactly such a scenario was simulated.
Landau added that his ministry was conducting
consultations with Prime Minister Binyamin Netanyahu and security authorities
as events unfold. “No disruption of the electricity supply is expected,” the
statement said, adding that Israel has the capacity to immediately switch to
alternative energy sources.
A ministry spokesperson declined to respond to questions
from The Jerusalem Postover reports that the blast had been caused by an
explosion in the terminal.
Army Radio reported Saturday that the gas pipeline was
only expected to begin servicing Israel in about a week, once repairs are made.
The explosion sent a pillar of flames leaping into the
sky but was a safe distance from the nearest homes, said regional governor
Abdel Wahab Mabrouk. He said the fire was brought under control by mid-morning,
after valves controlling the flow of gas were closed.
The terminal is part of a pipeline system that transports
gas from Egypt's Port Said on the Mediterranean Sea to Israel, Syria and
Jordan. The Sinai Peninsula, home to Bedouin tribesmen, has been the scene of
clashes between residents and security forces.
The head of Egypt's natural gas company, Magdy
Toufik, said in a statement that the fire broke out in the terminal "as a
result of a small amount of gas leaking." However, a senior security
official said an explosive device was detonated in the terminal. The official
spoke on condition of anonymity because he was not authorized to discuss the
issue with reporters.
Prime Minister Binyamin Netanyahu's office said that it's
not clear whether damage was caused to the pipeline leading to Israel.
"But as a security precaution, Israel temporarily stopped, by its own
initiative, the transfer of gas as procedure dictates," statement from
Netanyahu’s office said.
Late last week AP reported that the turmoil in Egypt has
spurred an unexpected boom in Israel’s nascent energy sector, as investors bet
that demand for locally produced natural gas will surge because of doubts about
the stability of supplies from Egypt.
Small investors are buying stock in small companies that
could boom — or bust, a development that is worrying professionals.
"At the moment, there is the fear that there will be
problems with incoming gas from Egypt," said Liat Glazer, an analyst at
the Excellence-Nessuah investment house.
Israel’s long energy shortfall began to turn around in
recent years with discovery ofoffshore gas deposits.
Two years ago, Noble Energy — the US-based
company leading the exploration — announced deep-water finds that dwarfed
earlier offshore discoveries. In December, it announced it had
uncovered the world¹s biggest deep-water discovery in the past decade.
In all, Noble and its Israeli partners claim to be
sitting on some 25 trillion cubic meters of deep-water gas — enough to keep
Israel energy self-sufficient for decades. Gas could start flowing from one of
the fields by late 2012, experts say.
The scope of the finds fueled a gas rush on the Tel Aviv
Stock Exchange even before the new fears about the Egyptian gas supply arose,
bringing in retail investors for the first time since a mid-1990s bubble burst.
The local energy market is relatively new, providing an
element of the gold rush atmosphere. Six years ago, all of Israel’s electricity
was generated by imported coal and oil. Today, roughly half of the fuel Israel
uses to generate power comes from natural gas, drawn in equal parts from
Israeli sources and Egypt, which starting pumping to Israel in 2008 under a
15-year contract.
Amit Mor, an energy analyst, forecasts that by 2020, as
much as 70 percent of Israel’s electricity could be powered by natural gas.
The Sinai gas pipelines have come under attack in the
past. Bedouin tribesmen attempted to blow up the pipeline last July as tensions
intensified between them and the Egyptian government, which they accuse
of discrimination and of ignoring their plight.
Egypt has potential natural gas reserves of 62 trillion
cubic feet (1.7 trillion cubic meters), the 18th largest in the world.
Egypt began providing Israel with natural gas in February
2008 under a deal by which it will sell Israel 60 billion cubic feet (1.7
billion cubic meters) a year for 15 years.
The deal raised controversy at home, with some in the
Egyptian opposition saying the gas was being sold at below-market rates. Others
resent Israel's treatment of Palestinians, and say Egypt shouldn't supply
energy to Israel.
"The deal (to sell gas) was a blow to the pride of
Egyptians and a betrayal," former diplomat Ibrahim Yousri told The
Associated Press on Saturday.
Yousri led a high court challenge to try to halt Egypt's
sale of gas to Israel. Although the high court ruled in his favor in February
2010, the ruling was widely ignored by the government.