Explosion at gas terminal in Sinai disrupted the fuel to supply to Israel; Egypt supplies Israel with over 40 percent of its natural fuel.
By Haaretz Service and The Associated Press

An explosion at an Egyptian gas terminal that disrupted the supply of fuel to Israel had government officials pressing Sunday to speed development of a natural gas deposit that they say can make Israel energy independent.

Infrastructures Minister Uzi Landau wants the government to back loans so financing can be obtained to develop the Tamar field, off Israel’s coast in the Mediterranean Sea, a spokesman said. Landau also favors exempting the field’s developers from a proposed windfall tax.

“We have to do everything to improve Israel’s energy security,” Landau told Israel Radio on Sunday. “It is Israel’s obligation to remove every obstacle to developing Tamar as soon as possible.”

Landau’s spokesman, Chen Ben-Lulu, said the goal was to have gas from Tamar flowing into Israel by 2013.

“The explosion in Egypt on Saturday just proves the need to do so,” Ben-Lulu said. “We want energy independence as soon as possible.”

The explosion in Egypt’s northern Sinai Peninsula on Saturday came amid a popular uprising against longtime Egyptian President Hosni Mubarak. The blast set off a massive fire that was contained by shutting off the flow of gas to Jordan and Israel. Egypt’s natural gas company said the fire was caused by a gas leak, but local officials said an explosive device was detonated inside the terminal.

Egypt is to sell Israel 1.7 billion cubic meters a year for at least 15 years under a deal that went into effect three years ago. Israeli industry analysts see that flow as important to diversifying Israel’s fuel sources and for political relations.

At the same time, the turmoil in Egypt, which supplies up to half of the natural gas that Israel currently uses to power its electrical plants, has emphasized to Israelis the dangers of relying on other sources for fuel.

Israel’s Tamar field is said to contain about 8 trillion cubic meters of gas. In December, gas exploration companies led by U.S.-based Noble Energy announced that another deposit in Israeli waters, Leviathan, contained some 16 trillion cubic meters.

The finds – which Lebanon says, without providing proof, lie partly in Lebanese waters – are enough to keep Israel energy self-sufficient for decades, Israeli experts say.

“Israel needs to achieve security of energy supply. This is one of the most fundamental security and economic aspects of a country,” said Gina Cohen, an electricity and gas industry consultant based in Israel.

The supply of gas from Egypt has always been dogged by fears that the flow could be disrupted by saboteurs or political forces hostile to the deal and Egypt’s 1979 peace treaty with Israel.

Prime Minister Benjamin Netanyahu said Sunday that the government had been prepared for the possible disruption of Egyptian supplies and arranged for other sources to compensate.

“Because of these advance preparations, no disruptions in the gas supply to Israel are expected,” he said.