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Egyptian Turmoil Could Threaten Gas Pipeline to Israel


(Wall Street Journal) Joshua Mitnick - Turmoil in Egypt is fanning concern in Israel that a new government in Cairo might shut down the natural-gas pipeline that fuels as much as one-fourth of Israel's electricity network, based on a 20-year deal signed in 2005. Israel is shifting its electricity generation plants from coal to natural gas, which is cheaper and cleaner. Israel is expected to get 6 billion cubic meters, or half of its natural gas supplies, from Egypt this year. The other half comes from Israel's Yam Thetis offshore field, which is expected to run dry by 2014. That would leave Israel totally dependent on Egypt for gas unless infrastructure is prepared to tap the Israeli offshore field, Tamar, that was discovered in 2009.
2011-02-04 08:45:19
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