Jordan-Egypt Gas Deal

Jordan and Egypt signed a gas sales agreement this week in Cairo that would see the kingdom import 50% of its gas needs from Egypt in 2019. Current Jordan gas demand is around 350mn cfd which fires virtually all of the country’s conventional power plants ( MEES, 14 December 2018 ). Egypt began sending Jordan modest volumes last year with the remainder of Jordan’s gas coming from its FSRU offshore Aqaba ( MEES, 30 November 2018 ).

Details on the deal are scarce: Jordan’s energy minister Hala Adel Zawati says the price is ‘linked to Brent’ and is effective for one year. After that, imports from Egypt will grow more problematic – especially as Israel begins exporting gas to Egypt with the startup of the Leviathan gas field ( MEES, 9 November 2018 ). This will either halt volumes to Jordan or force the kingdom to import ‘Egyptian’ gas of Israeli origin. (CONTINUED - 140 WORDS)