A long awaited natural gas deal between Egypt and Jordan is expected to be finalized within a week, pending approval from Cairo.
Mr Khaled Toukan minister of energy and Mineral Resources said that Egyptian and Jordanian officials are days away from signing an amended natural gas agreement which was ratified by the Cabinet late last month. Constitutionally, everything is set from our part and we are awaiting approval from the Egyptian government.
Mr Toukan said that once the agreement is signed and ratified, Egypt is to supply Jordan with 150 million cubic feet of natural gas per day, a quantity that is to reach 220 million cubic feet by 2012. The agreement, which brings to an end a favorable pricing structure under which Amman received gas at prices less than half of the international rate includes safeguards stipulating penalties should the supply dip below 175 million cubic feet per day.
As part of the revamped deal starting in 2013, Cairo is to supply Amman with additional gas quantities as compensation for the multiple disruptions in supply caused by five separate acts of sabotage on the Arab Gas Pipeline earlier this year. Separate attacks on the pipeline in the Sinai Peninsula in February, April and July forced the Kingdom's power plants on their diesel and heavy oil reserves at a cost of around JOD 3 million per day.
According to finance ministry estimates, the disruptions in Egyptian gas supplies which Jordan relies on for 80% of its electricity generation needs cost the Kingdom a total of JOD 637 million in the first half of the year. An increased military presence in the Sinai region, combined with Egyptian authorities recent foiling of a sixth sabotage attempt have assured energy officials in Amman of the supply's stability.
Mr Toukan said that we are more confident of recent measures taken by our Egyptian counterparts and are looking forward to resuming pumping. Currently the Kingdom receives 80 million cubic feet of Egyptian gas per day around one third of the amount stipulated in the original 12 year agreement.
Meanwhile, the ministry has received over a dozen expressions of interest for the supply of liquefied gas with Amman set to release a request for a proposal for the construction of an offshore terminal in the Port of Aqaba by the end of the year.
The drive for liquefied gas comes as energy officials attempt to address a five year gap ahead of the development of domestic energy resources including wind, oil shale and nuclear power. Jordan imports 97% of its energy needs at a cost of one fifth of the gross domestic product.
(Sourced from Jordan Times)
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