The agreement was signed in Cairo by Sufian Bataineh, Director General of the National Electric Power Company (NEPCO), and Yassin Mohamed, Chairman of the Egyptian Natural Gas Holding Company (EGAS). The event was attended by Jordanian Minister of Energy and Mineral Resources Saleh Al-Kharabsheh, Egyptian Minister of Petroleum and Mineral Resources Karim Badawi, and senior officials from both countries.
اضافة اعلان
The agreement, which aims to enhance the efficiency of energy resource utilization while minimizing costs, reflects the ongoing strategic energy partnership between the two nations.
Minister Al-Kharabsheh emphasized that the floating storage units would remain in operation until 2026, after which a shore-based regasification unit currently under development in Aqaba will take over. The construction of a new liquefied natural gas (LNG) terminal in Aqaba has already begun, with completion expected by the end of 2026.
Al-Kharabsheh praised the distinguished energy cooperation between Jordan and Egypt, stressing the importance of the agreement in maximizing infrastructure use, enhancing operational efficiency, and reducing costs. He also highlighted the valuable expertise both countries share in the energy sector, which will be crucial for future collaboration.
For his part, Bataineh noted that the agreement aligns with Jordan’s efforts to strengthen its energy security and improve the efficiency of its electricity system. He emphasized that the terms of the agreement ensure mutual benefits, with gas supplies being transported via the existing pipeline network between the two countries.
The agreement includes provisions for both technical and commercial terms, ensuring that the rights of both parties are protected. It also outlines a flexible approach to gas use, allowing Jordan to access LNG without incurring fixed costs unless necessary. Under the terms, Jordan will be allocated up to 350 million cubic feet of gas per day equivalent to 50% of one FSRU’s capacity or 25% of two units’ capacity.
The LNG supply arrangement is expected to reduce Jordan’s annual costs significantly, with an estimated $3 million per shipment and $5 million for transport via Egypt’s pipeline network. This cost-effective solution is a stark contrast to the current $70 million annual expenditure on the LNG terminal in Aqaba.
The agreement is seen as a flexible and low-cost alternative to ensure Jordan’s gas supply until the new LNG port in Aqaba is completed. The Aqaba port, expected to be fully operational by late 2026, will provide a long-term solution to Jordan's energy needs.
.jpg)
.jpg)
