Egypt and Jordan have signed a pivotal agreement to enhance the delivery of liquefied natural gas (LNG) through their existing pipeline network, marking a significant step in regional energy collaboration. The deal, inked by Sufian Bataineh, Director General of the National Electric Power Company (NEPCO), and Yassin Mohamed, Chairman of the Egyptian Natural Gas Holding Company (EGAS), was witnessed by Egypt’s Petroleum Minister Karim Badawi and Jordan’s Energy Minister Saleh Al-Kharabsheh.
Under the agreement, Egypt will utilize its floating storage and regasification units (FSRUs) to process LNG deliveries for Jordan until 2026. Following that, operations will transition to a new onshore regasification unit in Aqaba, Jordan, with construction set to commence this month. This development is crucial for Jordan as it continues to bolster its LNG infrastructure amidst rising energy demands.
The agreement allows Jordan to access up to 350 million cubic feet of gas daily, which constitutes a considerable portion of the FSRU capacity. This setup eliminates fixed costs unless the gas is utilized, providing a cost-effective solution that is projected to slash Jordan’s annual LNG expenditures. Currently, Jordan spends approximately $70 million annually on its LNG terminal in Aqaba, whereas the new arrangement reduces the cost per shipment to $3 million plus $5 million for pipeline transportation.
This strategic partnership underscores the deepening cooperation between Egypt and Jordan in the energy sector, as highlighted by Minister Karim Badawi. The collaboration aims to ensure energy security and optimize the use of shared infrastructure.
Looking ahead, both nations are exploring further synergies, including the potential construction of a floating gasification unit that could serve both countries’ grids. They are also considering a joint acquisition of a gasification vessel, reflecting a shared commitment to enhancing their LNG import capabilities.
This agreement not only strengthens the energy ties between Egypt and Jordan but also sets a precedent for regional cooperation in sustainable energy solutions.
