Jordan Approves Gas Deal With Shell

Jordanian cabinet on Sunday approved a gas deal between the National Electric Power Company and Shell, reported Jordan’s Petra News Agency.

The company was chosen after an international competitive tender, the news agency reported without providing details about the quantity of fuel the utility would be buying.

The cabinet had assigned the national power company, as buyer of natural gas, to negotiate with Shell the terms of the deal that would secure about 15 percent of Jordan s energy needs, Petra News Agency added.

In September, Noble Energy  announced the execution of a non-binding Letter of Intent (LOI) to supply natural gas from the Leviathan field, offshore Israel, to the National Electric Power Company Ltd. (NEPCO) of Jordan.  Delivery of natural gas is expected to occur at a border location between Israel and Jordan, following the completion of related pipeline infrastructure.

However, the deal has been facing stiff opposition as country’s main opposition party threatened Saturday to take legal action against anyone in the kingdom who signs the deal with Israel.

Jordan’s House of Representatives also voted against a draft agreement that would have stipulated importing gas from Israel.