Terrorists blew up a gas pipeline near the Egypt-Israel border early Tuesday, Egyptian security officials reported.
It's the fourth such attack this year since the 18-day uprising in Egypt that ousted President Hosni Mubarak.
The terminal is located in the northern part of Egypt's Sinai Peninsula, about 30 miles west of the Israeli border.
Tuesday's pre-dawn attack sparked a huge fire that sent flames shooting into the air.
The bombing stopped the flow of natural gas to Israel, forcing a halt in fuel exports. The Jewish state gets about 40 percent of its gas from Egypt.
"The Sinai is already known as a lawless land," a senior Israeli official told World Net Daily. "There is real concern that if the Egyptians don't get the Sinai back under their control, it could develop into a major threat to Israel."
There were no casualties, and no one has claimed responsibility for the explosion.