BICOM

The Egyptian gas pipeline in Sinai that supplies Israel and Jordan with gas was blown up early this morning.  According to witnesses and security sources, three men opened fire on the pipeline at a pumping station in the area of al-Maidan, southwest of the city of el-Arish. A large explosion followed the incident and eyewitnesses said that they saw 15-metre flames shooting up from the pipeline.

Last month, the Egyptian army and police announced they were cracking down on terrorist groups in the area after a series of similar attacks on the pipeline. At the time, authorities said the pipeline had been attacked five times since the February revolution that overthrew then-Egyptian leader Hosni Mubarak.

The pipeline between Egypt and Israel became operational in 2008 and the arrangement represents one of the major economic agreements between the two countries. In total, Israel receives about 40% of its natural gas from Egypt.

Since the ousting of Mubarak the issue of gas sales to Israel has become highly controversial in Egypt, with various allegations circulating that Israel received below market prices for the gas and that Egyptian government officials enriched themselves on the deal. The Israeli government and Israeli investors in the pipeline have strongly denied below market pricing for the gas.

The pipeline is run by Gasco, Egypt’s gas transport company and is a subsidiary of the national gas company EGAS.

In related news, Egypt’s foreign minister said yesterday that his country will always respect its landmark peace treaty with Israel and is seeking ways to strengthen its “strategic relationship” with the United States. Mohamed Amr’s comments in an interview with The Associated Press come at a time of mounting concern about deteriorating Israeli-Egyptian relations.