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Another terrorist attack on Egyptian natural gas pipeline
The disruptions in the natural gas pipeline from Egypt continue: on July 4th there was a terrorist attack on the natural gas pipeline that connects to Israel, Jordan and Lebanon. There was a bombing of the pipeline roughly 60 KM east of the Suez Canal; this is the third bombing of the pipeline this year. This time, however the disruption was fixed very promptly and there were impediments in the natural gas flow for less than two days.
Due to the increased risk in importing natural gas from Egypt, Israel is seeking new ways to produce energy by substituting natural gas with Diesel fuel. Since it will be at least two years until Israel could start using the natural gas found in the natural gas cache – Tamar, Israel might switch back to Diesel fuel.
The electric company already issued a formal request to the Israeli government to assist in purchasing 650 million tonnes of Diesel fuel for 2011. This move is likely to raise the prices (directly and indirectly) of electricity in the following months to come.
New estimates on the Mira and Sarah natural gas caches
According to recent news, the estimates on the probabilities of finding 4.6 trillion CF in “Mira” and 1.9 trillion CF in “Sarah” are 58% and 43%, respectively. This estimate was provided by one of the members that holds the licenses on these natural gas developments – “Hachshara Energy“.
Underneath these caches, there is an additional compound probability of nearly 18% of finding 151 million bbl of crude oil.
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