Only three weeks after the supply of natural gas from Egypt to Israel was resumed, the Sinai pipeline has again been hit by a blast - the sixth such attack since the start of the year. Egyptian security sources say that the flow of gas from Egypt to Israel and Jordan has been halted.
The blast occurred during the night on the main pipeline transporting gas from Egypt. Initial reports indicate that the attack was in the vicinity of Mazar, some 60 kilometers west of El Arish in the northern Sinai. Residents of El Arish told "Reuters" that they were able to see huge flames following the attack.
An Egyptian security source said, "First indications suggest that we are talking about deliberate sabotage.
News of the attack is a bitter pill for the Israel Electric Corporation (IEC) (TASE: ELEC.B22), which is struggling financially due to having to buy more expensive and polluting diesel to make up the shortfall from disruptions in the supply of natural gas from Egypt. There will also be repercussions for Israeli consumers who have been hit by successive hikes in electricity rates due to the IEC's need to purchase more expensive fuel.
Published by Globes, Israel business news - www.globes-online.com - on November 10, 2011
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