Egypt is negotiating with Jordan over increasing the price of Egyptian natural gas it exports to the fellow Arab state, an official Egypt’s Oil Ministry said on Monday.

“Negotiations are moving forward in a positive direction and soon an agreement will be signed to modify gas prices,” the official, who asked not to be named, told Reuters.

He said he did not expect a signing on Thursday as some news reports had suggested.

A previous gas deal between Egypt and Jordan was signed in 2004 and was meant to last 15 years. It stipulated the export of 240 million cubic feet of gas a day, enough to generate around 80 percent of Jordan’s power.

In July 2010, the two countries agreed to, but did not sign, a deal for additional exports that would bring the total figure to 300 million cubic feet per day of gas.

Jordan’s Energy Minister Khaled Toukan has said gas exports from Egypt would resume in September despite repeated attacks on the pipeline in Egypt’s Sinai region.

Since a popular uprising ousted Egyptian President Hosni Mubarak, armed militants have used a security vacuum in North Sinai to stage attacks on the gas pipeline supplying Jordan and Israel, disrupting flows in both countries.

Source: Reuters