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Planned deals to allow flow of imported gas through Arab pipeline

By Abeer Numan - Feb 11,2014 - Last updated at Feb 11,2014

AMMAN — The government will soon sign two agreements with Jordanian-Egyptian Fajr Company for Natural Gas to allow for the transfer of gas imported from global markets to electricity generating plants via the Arab Gas Pipeline, Energy Minister Mohammad Hamed said on Monday.

Under the first agreement, Aqaba's new Liquefied Natural Gas (LNG) Terminal will be connected to the Arab Gas Pipeline, which is currently used to channel Egyptian natural gas into Jordan, Hamed said.

Whereas under the second agreement with the Egyptian-owned company, gas imported from global markets — after being channelled and processed through the Aqaba terminal — will be allowed to pass through the pipeline along with Egyptian gas to reach electricity generating plants around the Kingdom, Hamed told The Jordan Times.

“This will ensure the diversification of energy resources and preclude the disruption of the LNG supply used to generate electricity,” he noted.

Underlining the importance of the agreements, the minister said they should have been signed years ago. Now that the Aqaba terminal construction is coming along, the agreements will help Jordan have a diversity of pure resources by no later than November this year, he added.

The Council of Ministers on Sunday approved the two agreements and delegated Hamed to sign them.

Ongoing disruptions in Egyptian gas supplies have exerted pressure on the government to look for alternatives, especially since the national annual energy bill has grown to some JD4.4 billion, with the cost of electricity subsidies reaching over JD1 billion.

The Kingdom annually imports over 96 per cent of its energy needs.

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