Egypt’s Gas Exports to Jordan Might Resume in 2 Weeks

Following the sabatoge explosion on 27 September in Egypt’s Sinai that cut off gas supply to Jordan, it is expected to resume in two weeks. Egyptian authorities informed Jordan’s energy minister that gas exports to Jordan might resume in two weeks time, after the pipeline between the two countries is repaired, according to several news sources.

Pipelines delivering Egyptian natural gas from the Sinai to Jordan and Israel were sabatoged and exploded on 27 September, the fifth since February, causing a halt in gas exports. Jordan, which depends on Egyptian gas for 80 per cent of its energy needs, was forced to switch to fossil fuels to compensate for the stoppage.

Egypt was negotiating with Jordan over the increase of the price of Egyptian natural gas exported to the fellow Arab state. Sources say the two countries reached an agreement on the new price, but a contract has not yet been signed. Egyptian natural gas is sold to Jordan at around $3-$5 per million British Thermal Unit (BTU), while international prices range between $6 and $7. The contract review was initially scheduled for 2018.

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 per day, enough to generate around 80 per cent 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.

Source: Oil Egypt


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