Jordan and Egypt sign deal to renew flow of natural gas

AMMAN — Jordan and Egypt on Thursday signed amending agreements on the sale and purchase of natural gas, under which Amman will import from Cairo 10 per cent of its needs of natural gas to generate electricity. 

In a press statement, following the signing ceremony and a meeting with Egyptian counterpart Tarek El Molla, Energy Minister Hala Zawati said that both sides signed amendments to 2004 agreements, which included gas amounts that have not been provided for Jordan, according to a ministry statement.

Egypt provided Jordan with 250 million cubic feet of natural gas  daily since 2004, but these amounts started decreasing at the end of 2009 until they were completely halted in 2011 after some 25 sabotage attacks on the Arab Gas Pipeline, the ministry said.

Such conditions resulted in cumulative losses of the government-owned National Electric Power Company of around JD5 billion, according to the statement, which added that the Kingdom’s daily needs of natural gas for electricity generation stands at 330 million cubic feet. 

The country had to rely on a more costly heavy fuel to operate its generation facilities, before switching to liquefied natural gas after building a special terminal in Aqaba to handle the incoming shipments.

During Thursday’s meeting, Zawati and Molla discussed means to install natural gas networks for industries, which are currently being implemented by the Jordanian-Egyptian FAJR for Natural Gas Transmission and Supply Company.

Both ministers also discussed issues related to electricity exchange and cooperation in the mineral resources field, mainly those pertaining to phosphate, in a way that serves both countries.

Also on Thursday, Zawati met with Egyptian Electricity Minister Mohammad Shaker over cooperation on electricity connection and exchange, as well as exchanging expertise in the fields of energy and renewable energy.