The Egyptian Government is holding vigorous negotiations with the Jordanian-Egyptian Fajr Co. to amend the price of Egyptian gas delivered to Jordan, said a top official to Egypt Oil & Gas.
According to the terms of the 15-year contract signed between the two countries, Jordan receives one million cubic feet of gas for only $1. The Egyptian side is working hardly to alter these terms and modify the pricing strategy to cope with the current economic recession and market instability. Moreover, negotiations about increasing the amount of gas exported to Jordan are discussed as well.
It is worth mentioning that Jordan consumes approximately 40 percent of the Arab Gas Pipeline, as the quantity of gas needed for industry expected to reach 1.5 billion cubic meters a year by 2017.
The head count of the Egyptian-Jordanian company counts for $125 million. The company was initiated with the contribution of four Egyptian companies; Enppi, Petrojet, Gasco and Egas, having the aim of executing the second phase of the Arab Gas Pipeline, which total cost amounts to $300 million.