Energy-short Jordan adds to security

Adding to Jordan’s LNG import facility comes a cross-border pipeline gas contract between its power generator and the partners in the eastern Mediterranean Leviathan field.

(This article is part of Natural Gas World Magazine Issue 4 published October 5 2016)

Jordan’s National Electric Power Company (Nepco) signed a controversial agreement to import around 3bn m³/yr of gas from the Leviathan field owners, offshore Israel, September 26. The 15-year, Brent crude-linked deal is valued by US producer Noble Energy, the principal partner, at around $10bn.

The gas would be supplied to Nepco from the Israeli pipeline network at the Israeli-Jordanian border. That pipeline is still to be built. The UK business daily Financial Times reported September 26 that Jordan wants Israel to finance a $70mn, 26-km pipeline to the border.

The deal has still to receive regulatory approvals from the Israeli and the Jordanian authorities and agreement for the gas transport has to be agreed upon between the Natgas, Israel Natural Gas Lines and its Jordanian equivalent, FAJR. The contract also depends upon a final investment decision for Leviathan, which is expected by the year's end.

To date, Jordan’s energy security comes from its regasification terminal at Aqaba. This has led to Jordan becoming a seasonal re-exporter of gas to Egypt.

Gas development in Jordan was the subject of a conference in London 29 September, organised by the UK’s Cross-Border Information. The chairman of the panel, Glada Lahn of the Chatham House think tank, listed the supply options within the context of its sustainable energy ambitions and plans to promote energy efficiency. 

Full article in Issue 4 of Natural Gas World Magazine. Now available for iPad and iPhone.