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OIL AND GAS
House committee says more pipelines would keep gas bills lower
by Daniel J. Graeber
Washington (UPI) May 20, 2013


Militants in restive Sinai Peninsula attack Egyptian gas pipeline
Cairo (UPI) May 20, 2013 - Egyptian media said Tuesday militants in the Sinai Peninsula bombed a natural gas pipeline in a regional industrial zone, though no injuries were reported.

Ahram Online reported unknown assailants blew up the pipeline that supplies regional industries in the city of Arish. The blast was described as powerful, though no other details were provided.

Militants in the restive peninsula have targeted the region's gas infrastructure repeatedly since the ouster of President Hosni Mubarak in 2011.

The latest attack follows a push by the Egyptian government to address a lingering gas shortage. The Egyptian Ministry of Petroleum expects domestic gas production will increase 1.7 percent this year, though consumption is expected to increase by 12.5 percent.

More than a dozen new natural gas wells are expected to be tied into the national grid this year in an effort to increased gas production.

A country report from the U.S. Energy Information Administration, published in July, says Egypt may be forced to import natural gas for the first time in recent history to cope with rising demand.

The U.S. House Energy and Commerce Committee says it's time to build domestic natural gas infrastructure before winter energy demands increase.

The committee said legislation passed in the House in late 2013 -- the Natural Gas Pipeline Permitting Act -- would facilitate the construction of gas pipeline infrastructure needed to keep supplies moving when demand is at its highest.

"Even as we enter the hot summer months, we know winter will come again soon," a committee statement read Monday. "And the only way to bring down heating prices in the future is to build new infrastructure now."

The bill would require the Federal Energy Regulatory Commission to make a decision on new pipelines within 12 months. Detractors of the measure said FERC already acts quickly and, if passed in the Senate, the bill would do little to address high heating costs across the board.

Nevertheless, the House committee, chaired by Rep. Fred Upton, R-Mich., said "it's well-past time for the Senate to act" on the measure to keep prices lower.

The price for natural gas peaked in 2014 in February at $5.16 per million British thermal units, the highest monthly average in four years, the U.S. Energy Information Administration reports.

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