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April 28, 2011       Share:    

Source: http://www.jpost.com/NationalNews/Article.aspx?id=218149

The Costs to Israel of the Sinai Pipeline Bombing

(Jerusalem Post) Sharon Udasin - After a second Sinai pipeline bombing on Wednesday halted the flow of natural gas from Egypt to both Israel and Jordan, experts say that Israel will be able to fulfill its energy needs, but not without both financial and environmental costs, at least in the short term. The bombed pipeline also delivers gas to Syria and Lebanon via the Jordan pipeline. "The Israel Electric Corporation (IEC) has the means to guarantee a continuous supply of electricity to meet the country's demands for all of its users, regardless of the cessation in the Egyptian gas supply," said Dr. Amit Mor, CEO at the Eco Energy consulting firm. "IEC will do this by utilizing the Ashkelon and Hadera coal plants at maximum capacity." Coal currently fuels the production of 62% of Israel's electricity, while natural gas accounts for 36% - two-fifths of which is supplied by Egypt. In addition, the IEC will probably convert several of the stations that currently run on natural gas to operate on heavy fuel oil and diesel instead, at a cost of an additional $1.5-2 million per day. The price of diesel fuel is six times higher than the price of Egyptian gas. Global Commentary

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