Bethel Finance: Gas pipeline hit again as Egypt votes

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Bethel Finance news:

Egypt's natural gas pipeline to Israel and Jordan was attacked again last night - the eighth attack since the beginning of the year - just two days after the previous attack. The attack occurred just six hours before voting booths opened across Egypt for the first parliamentary elections since the fall of Mubarak regime in February.

Preliminary reports state that the explosion occurred west of El Arish, in the El Sabil area in northern Sinai. Large rescue and fire-fighting units are at the scene.

The first round of Egyptian parliamentary elections begin today, against a backdrop of fears about violence in Cairo streets. Analysts predict that the Muslim Brotherhood will win a decisive majority in the elections.

There have three attacks on the Sinai pipelines in November alone, following attacks in July and September. Egypt's gas supply contract with Israel is hugely unpopular among Egyptians, who believe that Israel does not pay a fair price for the gas, and that it reached a deal by bribing Mubarak regime officials.

The repeated attacks on the pipelines have disrupted gas deliveries to Israel, Jordan, and Syria. Israel Electric Corporation (IEC) (TASE: ELEC.B22) recently announced that, due to the suspension in gas deliveries from Egypt and the switch to other fuels, mainly diesel, it needs NIS 3-3.5 billion in immediate government aid.

Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), which owns 12.5% of Egypt's East Mediterranean Gas Company (EMG), announced, "At around 01:00 last night there was an explosion close by and west of Al Arish along the Egyptian gas pipeline and west of EMG’s site, due to an alleged terror attack. The pipeline is owned and operated by GASCO, the Egyptian gas transport company, which is a subsidiary of EGAS, the Egyptian national gas company (EMG's gas supplier). Following the explosion EGAS has initiated its standard shut down procedure affecting gas transportation throughout the Sinai area and gas supply to Jordan, Lebanon, Syria; to major Egyptian industries and gas consumers in the Sinai; and to EMG.

"The extent of the damage to GASCO’s pipeline and the estimated repair period is unknown at this point. Neither EMG's site nor EMG's pipeline were damaged as the affected GASCO’s pipeline is not a part of the EMG pipeline system."