Video | Egypt pipeline blast affects Jordan

Earlier reports suggested that sabotage had been behind the blast on Saturday.

Magdy Toufik, the head of Egypt's natural gas company, said in a statement that the fire broke out "as a result of a small amount of gas leaking'' in the terminal at the pipeline that runs through the El-Arish area of Egypt's north Sinai.

However, a local security official said an explosive device was detonated inside the terminal, and the regional governor, Abdel Wahab Mabrouk, said he suspected sabotage.

Jordanian officials are scrambling to rearrange power supplies after the Jordanian route, that runs from El-Arish to Aqaba and then up to Amman, was damaged by the explosion.

It was reported that the gas pipeline running to Ashkelon in Israel has not been affected. There were no reports of any casualties as a result of the blast.

The governor of Sinai told Al Jazeera that the fire that resulted from the explosion of the gas supply line had been controlled and that the infrastructiure at the gas terminal had not been severely damaged.

"The armed forces and the authorities managed to close the main the source of flow and are trying to control the fires," a source said.

But regardless of the cause of the blast, the result was a strain on the Jordanian economy at a very difficult time.

The blast is likely to cost Jordan around US$4m a day, at a time when the country is trying to implement economic and political reforms.

Jordan does not have any of its own reserves and currently gets all of its gas from Egypt.

Egypt stopped pumping gas to Jordan following the explosion, Ghaleb Al Maabreh, the head of Jordan's national electricity company, was quoted by Al Jazeera.

"All power plants in Jordan are having to operate on burning fuel oil and diesel in order to provide the country with electricity," Maabreh said.

Egyptian authorities have promised to repair the pipeline within a week.

Jordan only has oil and gas reserves to last around three weeks, but they have called the current situation manageable, El-Shamayleh said.

'Saboteurs'

Earlier on Saturday, Egyptian state television reported that "saboteurs took advantage of the security situation and blew up the gas pipeline," adding that there had been a big explosion.

Residents in the area also reported a huge explosion and said flames were raging in the area.

The security presence in the Sinai province is very light.

Eyewitnesses are being interviewed by authorities and the investigation is focusing on some bedouin tribes of Northern Sinai.

Bedouin tribesmen of the Sinai Peninsula attempted to blow up the pipeline last July as tensions intensified between them and the Egyptian government, which they accuse of discrimination and of ignoring their plight.

The gas supplies from Egypt also account for 40 per cent of Israel's gas imports. 

Although the gas supply route to Israel has not been affected by the explosion, Israeli authorities remain concerned as the events have been unfolding in Egypt over the last few days.