Jordan, Egypt Sign Agreement To Maximise Natural Gas Infrastructure

6/11/2023 2:09:12 PM

(MENAFN- Jordan Times) AMMAN - Jordan and Egypt on Saturday signed an agreement to harness the gas infrastructure of both countries, under which the Egyptian side will use the Floating Storage Regasification Unit at the sheikh Sabah port in Aqaba for the remainder of the floating ship lease.

Under the agreement, the Jordanian side will receive liquefied Natural gas from Egypt, and will pump back a portion of the natural gas through transborder pipelines to Egypt if needed.

Minister of energy and Mineral Resources Saleh Kharabsheh and Egyptian Minister of petroleum and Mineral Resources Tarek El Molla attended the signing ceremony of the agreement, according to a ministry statement.

National Electric Power Company (NEPCO) Director Amjad Rawashdeh and Head of Egyptian Natural Gas Holding Company (EGAS) Magdy Galal signed the agreement.

In a press statement following the signing, Kharabsheh said that the main objective of the agreement is to utilise the resources of the two countries more efficiently and at a lower cost.

The floating vessel in Aqaba will be used until the ship's lease contract expires at the end of 2025, Kharabsheh said.

He confirmed that the ministry is at the bidding stage for this unit, and over the next two months, there will be an evaluation of the extent to which the designs meet the needs of both countries.

Kharabsheh commended the two countries' strategic and distinctive relationship in the energy sector.

For his part, Molla said that Egypt has expertise in various applications of domestic gas use, noting that Egypt will seek to maximise Jordan's benefit of these experiences, stressing the importance of Jordanian-Egyptian cooperation in several projects under the Energy Ministry's umbrella.

Egypt has several projects underway related to energy efficiency, carbon reduction and global warming, he added, noting that that natural gas is of paramount priority in these projects, mainly at the industrial level.

With regard to the agreement, Rawashdeh said that it is part of cooperation between the Jordanian and Egyptian governments and within NEPCO's plan to reduce the operational costs of Jordan's electrical system and enhance the energy security in both countries.

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