Flames rise after an explosion near the town of El-Arish, Egypt, 30 miles (50 kilometers) from the border with Israel, early Monday, July 4, 2011. Unidentified assailants blew up the Egyptian pipeline that carries gas to Israel and Jordan early on Monday, starting a fire and disrupting the flow of the gas, security officials said. (AP Photo)
Israel cannot use international arbitration rules to claim compensation for fresh disruptions to its Egyptian gas supply, Hany Dahy, head of the executive office at Egypt's Petroleum Authority, has said.
A natural gas station located west of Arish on the Sinai peninsula was blown up by unknown assailants early on Monday morning. According to Dahy, the blast was the result of "unforeseen circumstances" which give Israel no legal grounds with which to sue Egypt.
Dahy also denied media reports that the Israel Electricity Company is demanding compensation from Egypt due to the suspension of gas imports, saying the rumour is illogical as Egypt has no deal with the Israeli company.
He said that the deal was signed between the Petroleum Authority and the East Mediterranean Gas Company.
Abdul Hadi Abu Zeid, chairman of the Sinai Gas Company, said there is enough gas remaining in the pipeline to cover the needs of residents in Arish and South Sinai for two or three more weeks.
Monday's blast damaged the pipeline and set the supply station on fire. The pipeline, which passes through the Sinai on the way to Israel and Jordan, was attacked twice earlier this year.
No casualties have been reported from Monday's attack, according to Egyptian TV.