Jordan and Egypt agreed that the Jordanian side would exploit floating storage and gasification units (converting liquefied gas into a gaseous state) in Egypt during the next two years.
According to a statement by the Jordanian Ministry of Energy and Mineral Resources, partly reported by the official Jordanian Petra Agency, the agreement was signed in Cairo.
The Jordanian Minister of Energy and Mineral Resources, Saleh Al-Kharabsheh, said that the main goal of the agreement is to benefit from the resources of the two countries more efficiently and at a lower cost.
He stressed that the use of the floating ship will be until the end of 2026, after which the onshore gasification unit that is currently being implemented in Aqaba will be used, pointing out that the new liquefied gas port project was directly implemented by the contractor during the current month.
Reducing operational costs
For his part, Director General of the Jordanian National Electricity Company (NEPCO), Sufyan Batayneh, said that the agreement contributes to reducing the operational costs of the LNG port in Aqaba, in addition to protecting the National Electricity Company from global price fluctuations in the event that it needs LNG for any circumstances. Emergency.
It included the agreement signed between Jordan and Egypt regarding supplying Jordan with liquefied natural gas through the use of floating gas storage and gasification ships.
The agreement begins work from today until the end of 2026, and allows the Jordanian National Electricity Company to benefit from liquefied gas ships on the Egyptian side.
The agreement aimed to secure liquefied natural gas supplies to Jordan in emergency situations until the completion of the new liquefied gas port project in Aqaba, which is expected to be completed in the last quarter of next year in 2026.
Priority of use
The agreement included determining priority for the use of gas ships between the two sides in the event of a simultaneous need, with the allocation of 350 million cubic feet per day to Jordan (50% of the capacity of one ship or 25% of the capacity of two ships).
The agreement allowed the Jordanian Electricity Company to use liquefied gas without incurring fixed costs if there was no need.
The costs of the gas consumed are estimated at about $3 million per shipment and $5 million for transportation through the Egyptian gas network, which means that the annual cost of liquefied gas to Jordan will not exceed $10 million.
The cost of the current liquefied gas port project in Aqaba is about $70 million annually.
The agreement provides a flexible and less expensive alternative to supplying Jordan with liquefied natural gas while new infrastructure projects are being completed, according to Petra.
