Jordan and Egypt Forge Gas Agreement
In a significant step towards energy collaboration, Jordan and Egypt have reached an agreement that allows Jordan to utilize Egypt's floating storage and regasification units for liquefied natural gas (LNG) over the next two years. The agreement was formalized in Cairo, witnessed by the respective Ministers of Petroleum and Mineral Resources from both countries. Jordan's Minister of Energy and Mineral Resources, Saleh Kharabsheh, emphasized that the primary objective is to enhance resource efficiency and reduce costs for both nations.
Key Details of the Agreement
The agreement stipulates that Jordan will utilize the floating gas storage until the end of 2026, after which it will transition to an onshore gasification unit currently under construction in Aqaba. The new liquefied gas port project, which is expected to be completed by late 2026, is being implemented by a contractor this month. Sufyan Bataineh, Director General of the National Electric Power Company (NEPCO), noted that this collaboration is crucial for minimizing operational costs at the LNG port in Aqaba and shielding the company from global price volatility.
Economic Implications and Future Prospects
Under the agreement, Jordan will receive LNG supplies through floating gas storage and regasification vessels, ensuring emergency supplies until the new LNG port is operational. The arrangement allows for a daily allocation of 350 million cubic feet of gas to Jordan, which constitutes 50% of the capacity of a single ship. The financial implications are significant, with the estimated cost of gas shipments around $3 million each, and total annual expenses capped at $10 million. This strategic partnership not only aims to provide a cost-effective solution for Jordan's energy needs but also underscores the importance of regional cooperation in addressing energy challenges.
