Jordan and Egypt agree to supply the Kingdom with half of its natural gas needs

Jordan and Egypt agree to supply the Kingdom with half of its natural gas needs

Ministry of Energy and Mineral Resources

Jordan and Egypt sign an agreement to supply the Kingdom with half of its natural gas needs

Jordan and Egypt signed an agreement on Sunday to supply Egypt with natural gas in 2019 to cover half of the Kingdom's electricity needs.

The agreement was signed in Cairo by the Director-General of the National Electric Company, Amjad Al-Rawashdeh, the Egyptian General Manager of EG Gas, Osama Al-Baqali, and the General Manager of the Jordanian-Egyptian Fajr Company, Fouad Rashad, In the presence of Jordanian Minister of Energy and Mineral Resources, Hala Zwati, and her Egyptian counterpart Tariq Al-Mulla.

Zwati said in a press statement after the signing: "The agreement, which includes amendments to the agreements for the sale and purchase of natural gas between the two countries, provides for the quantities of gas exported by Egypt to Jordan during 2019, which is equivalent to half of the requirements of the electrical system in the Kingdom.

She added that the rest of the needs of the electrical system will be met through the company "Shell" International, which supplies the Kingdom with liquefied gas through the port of Aqaba, and local energy sources.

The Minister also stressed the importance of the return of Egyptian natural gas to reduce the cost of energy bill, which has long been a strain on the budget of the Kingdom, pointing to the impact of natural gas in reducing the cost of electricity to citizens.

With regard to gas prices, as stipulated in the agreement, Zwati said: "It is linked to a price equation based on Brent crude index."

In early August, Zawati signed an agreement with Egypt to restore natural gas to the Kingdom through the Arab gas pipeline, equivalent to 10 percent of the kingdom's electricity generation needs.

Egypt has supplied Jordan with around 250 million cubic feet of gas a day since 2004, but these volumes have declined since the end of 2009 and have been suspended since 2011.

The Kingdom's need for natural gas is estimated at 330 million cubic feet per day, which is used to generate electricity.

The new agreement was signed in conjunction with the visit of Egyptian President Abdel Fattah al-Sisi to Jordan, where he met with his successor, King Abdullah II.

Source: Petra + Agencies