Jordan and Egypt have inked a cooperation agreement to optimise the use of Egyptian gas infrastructure, enabling Jordan to access Egypt’s FSRUs for the next two years.
The deal was sealed in Cairo by NEPCO director-general Sufian Bataineh and EGAS chairman Yassin Mohamed.
The signing ceremony was attended by Jordanian Energy Minister Saleh Al-Kharabsheh and his Egyptian counterpart, Petroleum Minister Karim Badawi, alongside senior officials from both countries.
This agreement is set to enhance the efficiency of energy resource utilisation and minimise costs, underscoring the strategic energy partnership between Jordan and Egypt.
Minister Al-Kharabsheh highlighted that the floating storage units would serve until 2026, after which a shore-based regasification unit currently under construction in Aqaba is expected to take over.
The new liquefied natural gas (LNG) terminal in Aqaba, whose construction has commenced, is set for completion by the end of 2026.
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Jordan is allocated up to 350 million cubic feet of gas per day, which equates to half the capacity of one FSRU or the quarter capacity of two units.
This LNG supply strategy is expected to slash Jordan’s annual costs, saving an estimated $3m (Jd2.13m) per shipment and $5m for transport through Egypt’s pipeline network.
These savings are substantial compared with the current $70m annual outlay on the Aqaba LNG terminal.
Al-Kharabsheh highlighted the agreement’s role in enhancing infrastructure, improving efficiency and reducing costs, while emphasising their shared energy expertise for future joint ventures.
Bataineh from NEPCO remarked that the agreement is in line with Jordan’s ambitions to bolster its energy security and enhance electricity system efficiency.
He pointed out that the terms of the agreement promise mutual advantages, with gas supplies being transported through the existing pipeline network linking the two countries.
The agreement encompasses both technical and commercial terms to safeguard the interests of both parties. It also permits a flexible approach to gas usage, allowing Jordan to access LNG without incurring fixed costs unless necessary.
