Jordan Seeks  Extra Mid-Term LNG Supplies

Jordan’s National Electric Power Company (NEPCO) has launched a tender to import an additional 59.13 trillion BTU of LNG supplies per year on a delivered basis from 2016 to 2019. The LNG will be imported via its newly-purchased floating storage regasification unit (FSRU) Golar Eskimo located at the Red Sea port of Aqaba.

Jordan started importing LNG in May, taking deliveries from Shell with whom it has signed a five-year deal of around 1mn t/year (just under 2bcm/y of gas). The Golar Eskimo has an import capacity of 7.5 bcm/y.

In a request for proposal (RFP) issued on 23 July, NEPCO calls for potential suppliers to submit their bids by 2 September, with a view to an award by 30 September. Participants have the option to file bids for half of the proposed volume. Jordan says it prefers Brent-indexed prices, as the country remains heavily reliant on oil products for power generation, for which most of the LNG would be used. The level of oil indexation would typically stand at around 12.5-14%, MEES understands, similar to recently-signed Egyptian mid-term import deals. At currently-depressed oil prices it is difficult for LNG to compete with oil-fired power generation (MEES, 10 July). (CONTINUED - 288 WORDS)