Saturday, February 5, 2011

Egypt: Pipelines Are Poppin'

Egypt Pipeline Explosion Cuts Gas Supply To Israel Excerpts:

An explosion today on the Arab Gas Pipeline forced Egypt to shut off natural gas supplies to Israel and Jordan. There were conflicting reports out of Egypt as to the cause of the explosion, with the state-run Middle East News Agency saying the work was done by “subversive elements.” Oil Minister Samah Fahmy reportedly said it could take up to two weeks to repair the damage.

The pipeline is the third most strategically important piece of energy infrastructure in Egypt after the Suez Canal and the Sumed Pipeline. But it is the most important one to Israel, delivering 40% of Israeli natural gas supplies. The Israeli government said this afternoon that it did not expect any interruption of electricity supplies as the country has gas in storage and can also switch to other fuels like oil and diesel. Israel started receiving gas from the pipeline in 2008.

Assuming for a moment that this was not an accident, it represents a serious escalation of the crisis in Egypt.

As to the nature of the explosion, MSNBC plays up the terrorism angle, while Investors Business Daily plays it down. For clarity's sake, the fire/explosion happened at a facility that ultimately connects with pipelines heading both to Jordan and Israel. Reports are still conflicted as to whether the physical pipeline to Jordan was damaged, but Israel's pipeline was not.

This situation, while inconvenient for the Israelis(due to their rather large energy reserves), is devastating to the Jordanians, as they have no reserves, and import most of their energy solely from Egypt. Cause? To be determined, although my suspicious mind questions the perfect timing of this "accidental explosion." Which brings us to the focal question in this event's aftermath: Was this terrorism or something else?

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