Jordan, Egypt to sign new gas agreement

Jordan and Egypt are expected to sign a new gas deal this week after the two countries reached agreement on the pricing of additional quantities of Egyptian gas, the Jordan Times reported on Sunday.

Jordan, Egypt to sign new gas agreement
Jordan and Egypt are expected to sign a new gas deal this week after the two countries reached agreement on the pricing of additional quantities of Egyptian gas, the Jordan Times reported on Sunday.

"The new pricing scale is competitive and satisfactory," the paper quoted a senior Jordanian official as saying.

The first phase of the deal provides for supplying Jordan with additional 550 million cubic metres of Egyptian gas a year for industries and the electricity sector, the official added.

The Jordanian Minister of Energy and Mineral Resources Khalid Shreydeh is expected to visit Cairo in the coming two days to finalise the agreement.

Leaks in the Jordanian press over the past four months suggested that the flow of Egyptian gas to Jordan could be suspended after the supplier reneged on a pricing agreement that committed Egypt to keep the prices of its gas supplies to Jordan unchanged until 2018.

Egypt reportedly interpreted the agreement signed between the two countries to confine the fixed gas prices to government imports, while those ordered by the private sector were subject to price changes on the world market.

Jordan, which imports almost all its energy needs, receives Egyptian natural gas through a pipeline which passes through the Kingdom to Syria, and it is planned to reach later other regional countries.

The agreement which was signed between the two countries in 2003 provided for supplying Jordan with 2.3 billion cubic metres of gas a year at preferential prices for 15 years.

At least 85 per cent of Jordanian electricity is being currently generated by Egyptian gas, according to Shreydeh.

DPA
Last Mod: 09 Eylül 2007, 16:42
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