The Ministry of National Infrastructures estimates that the halt in natural gas deliveries from Egypt will cost the Israeli economy $1.5 million a day. The estimate is based on the higher cost that Israel Electric Corporation (IEC) (TASE: ELEC.B22) will pay for buying gas from Israeli supplier Yam Tethys and to use diesel to generate electricity.
Following today's attack on the gas pipeline in Sinai, Minister of National Infrastructures Uzi Landau called an emergency meeting to discuss ways of accelerating key projects to protect Israel's gas supply and electricity production. Projects include construction of a floating gas terminal in northern Israel to receive gas from the Tamar and Leviathan fields, and construction of a gas and coal dual-fuel power station in Ashkelon.
East Mediterranean Gas Company (EMG) shareholder Merhav Group, owned by Yosef Maiman, said that gas deliveries to Israel, Jordan, and Egyptian factories had been halted as a result of the attack.
A similar attack was foiled only a month ago, when a six-man terrorist squad entered a gas terminal in Sinai, overpowered the guards, but the explosives failed to detonate. An attack on a metering station on the pipeline to Jordan on February 5 resulted in a halt in gas deliveries to Jordan and Israel until March 15.
Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2011
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