Jordan, Egypt Sign Gas Supply Agreement For 2019

Jordan and Egypt have signed agreements to supply the Kingdom with about half of the electricity grid's needs of the natural gas for 2019

AMMAN, Jordan, (APP - UrduPoint / Pakistan Point News - 14th Jan, 2019 ) :Jordan and Egypt have signed agreements to supply the Kingdom with about half of the electricity grid's needs of the natural gas for 2019.

The agreements were signed by the National Electric Power Company (NEPCO) Director General Amjad Rawashdeh, Egyptian Natural Gas Holding Company (EGAS) Director General, Osama El Bakly and Jordanian Egyptian Fajr for Natural Gas Transport and Supply Company Chairman, Fouad Rashad, in the presence of Minister of Energy and Mineral Resources, Hala Zawati and her Egyptian counterpart Tarek El Molla.

The agreement, which includes amendments to the sale and purchase of natural gas agreements between the two countries, provides quantities of Egyptian gas exported to Jordan in 2019, that equate to half the electricity grid's needs in the Kingdom, Zawati said in a statement.

She added that the rest of the needs will be met through Shell International, which supplies Jordan with liquefied gas through the port of Aqaba, and from local energy sources.

The minister lauded the Egyptian side's approval of Jordanian amendments to the agreements, which maximize the benefit of Egyptian natural gas.

Those agreements are important in enhancing the stability of the Kingdom's electricity grid and ensuring the security of supplying electricity at prices below the price of liquefied gas.

She underlined the importance of the return of Egypt's natural gas in reducing the cost of energy bill, which has long been a strain on the Kingdom's budget, 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.

Regarding the exclusivity of the agreement in 2019, she said: "By the end of 2019, the vision of the Egyptians will be clear about the quantities of production and the reserve indicators." Egypt also has its gas commitments, she noted.

Zawati and El Molla discussed ways to enhance energy cooperation between the two countries, especially in the field of natural gas networks for industries, which is currently executed through Fajr, as well as the cooperation in the field of mineral resources to serve the interests of both countries.