The "New York Post" quotes experts as saying, "An Egyptian pipeline that transports natural gas to Israel and Jordan may not resume shipments after it was shut off by the Egyptian army."
The "New York Post" adds that Egypt closed the pipeline that supplies Israel with almost 20% of its energy needs following a February 5 attack on part of the pipeline setting off an explosion. While the blast affected the flow of natural gas to Jordan, shipments to Israel were halted as a precaution. The gas flow to Israel was scheduled to resume last week but was delayed until later in the month.
Delphi Global Analysis Group founder David Wurmser said, "That pipeline may stay offline. I think the days of that pipeline are numbered."
The "New York Post says that EMG exported 2.1 billion cubic meters of gas to Israel in 2010, 40% of Israel's natural gas consumption. The rest is supplied from the Yam Tethys field offshore from Ashkelon, owned by Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL).
EMG's main Israeli customer is Israel Electric Corporation (IEC) (TASE: ELEC.B22).
The "New York Post" quoted Michael Makovsky from the Bipartisan Policy Center, a Washington think tank, as saying, "The military might see closing the pipeline as an easy way to show protesters it is listening to their concerns."
Published by Globes [online], Israel business news - www.globes-online.com - on February 27, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011