ISRAEL: Egypt gas pipeline explosion raises energy concerns
Israel's quest for cleaner energy sources just got muddied, with the explosion in a pipeline supplying natural gas from Egypt. The explosion occured at a measuring station in Arish and damaged the line supplying Jordan. The line supplying Israel was shut down at first as a precaution. This proved wise as it turned out that the fire overheated the pipe and compromised the entire supply line. It will take several days to cool and for the supply to resume.
The Merhav group, the Israeli partner in the EMG consortium that exports Egyptian gas to Israel, said Saturday it could take up to a week. According to news reports, Israel buys about $10 million worth of gas a week from Egypt in many long-term deals. Meanwhile, it's been reported that Egyptian businessman Hussein Salem, who owns 28% of EMG, has fled to Dubai- with $500 million.
Israel produces about 45% of its electricity from natural gas that comes from two main sources: 60% domestically from a reserve off Israel's southern shore, and from 40% from Egypt. Israel was hoping to get about 70% of its electricity from gas by the end of the decade, for environmental reasons as well as economic. Its southern field has reserves thought to be enough to last until the end of 2013 but could be depleted a year sooner if Egyptian supply isn't resumed.
Prime Minister Benjamin Netanyahu held consultations Saturday morning with the ministries of national infrastructures and defense. Israel is prepared for such a situation, Netanyahu said, and has the immediate possibility to switch to alternative energy and gas sources. National infrastructures minister Uzi Landau said that in coming days, the electric company could use gas, coal and even diesel if necessary to run its power plants. In the long run, extra costs could make their way down to the citizens, warn observers.
The Knesset's economics committee, the parliamentary body that oversees the issue, is scheduled to address related concerns Sunday. Committee chair Carmel Shama Hacohen told media Israel must take these scenarios into consideration, as well as possible terrorist threats to gas fields, exploration and energy facilities too. Security measures have been stepped up around all relevant facilities, now more clearly than ever a matter of strategic importance.
Israel has large gas sources of its own — potentially, at least.