Jordan to save $60m annually with Egyptian LNG agreement

AMMAN — Jordan and Egypt on Monday took a "significant" step towards bolstering regional energy cooperation by signing an agreement that enables Jordan to utilise Egypt’s floating storage and regasification units (FSRUs) for the next two years.

The agreement was signed in Cairo by Director General of Jordan's National Electric Power Company (NEPCO) Sofyan Batayneh and Chairman of the Egyptian Natural Gas Holding Company (EGAS) Yassin Mohamed, according to an Energy Ministry statement.  

The signing ceremony was attended by Minister of Energy and Mineral Resources Saleh Kharabsheh, Egyptian Minister of Petroleum and Mineral Resources Karim Badawi, and other senior officials from both countries.

Kharabsheh hailed the agreement as a milestone in Jordanian-Egyptian energy cooperation, highlighting its potential to maximise resource efficiency and cut costs. 

He noted that Jordan will rely on Egypt's FSRUs until 2026 when a land-based regasification facility under construction in Aqaba is expected to become operational.

"The agreement enables both countries to optimise the use of their resources and infrastructure, achieving mutual benefits while lowering costs," Kharabsheh said.

Under the agreement, Jordan will have priority access to Egypt's FSRUs, with 350 million cubic feet of natural gas per day allocated to meet Jordan’s needs—equivalent to 50 per cent of an FSRU’s capacity.

The cost of Jordan's LNG shipments is expected to be around $3 million each, with an additional $5 million for transport via the Egyptian gas network. 

Total annual costs are capped at $10 million, significantly less than the $70 million currently spent on the Aqaba LNG terminal, the statement said. 

Batayneh underscored the strategic importance of the agreement in safeguarding Jordan’s energy supply during emergencies. 

"This cooperation will secure a reliable supply of LNG while reducing operational costs, reflecting a shared vision to enhance energy security, efficiency, and affordability," he said.