Egyptian gas pipeline hit for fifth time

Egyptian authorities have accused an extremist Islamic Bedouin group for the latest blast in northern Sinai.

For the fifth time this year, terrorists yesterday blew up the terminal serving the main pipeline from which gas flows to Israel from Egypt in the northern Sinai, AP reported. Egyptian sources have confirmed the report.

This attack at the al-Shulaq gas terminal is the third on the pipeline this month alone and the fifth since the beginning of the year, when an uprising toppled President Hosni Mubarak.

While no one claimed responsibility, Egyptian officials have accused an extremist Islamic Bedouin group in northern Sinai of the attack. On Friday, there was an exchange of gunfire between Egyptian security forces and the Bedouin extremists, in which five people were killed.

These repeated attacks have caused disruptions in gas supply from Egypt to Israel, Jordan and Syria. The Israel Electric Corporation (IEC) (TASE: ELEC.B22) announced recently that as a result of disruptions in gas supply, and the transition to using alternative fuels to produce electricity (mainly diesel), needs NIS 3-3.5 billion in immediate government financial assistance.

The disruption in the Egyptian gas supply has also harmed Yosef Maiman's Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), a partner of Egyptian gas supplier East Mediterranean Gas Company (EMG).

Published by Globes [online], Israel business news - - on July 31, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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