Egypt to compensate Jordan for suspension

Egypt produces 5.7 billion cubic feet of natural gas every day against a consumption of 6.2 billion cubic feet.

Egypt to compensate Jordan for suspension

The Egyptian Natural Gas Holding Company (EGAS) has said that it will compensate Jordan for the suspension of Egyptian natural gas deliveries to the Hashemite Kingdom since July, provided that Egypt gets enough gas to satisfy its local needs.

The company, which manages state stakes in national gas projects, added that it seeks to return to its normal levels of natural gas delivery to Jordan as soon as possible.

"We will compensate Jordan later when we have natural gas surpluses after satisfying local needs," EGAS Chairman Taher Abdel-Rehim told the Anadolu Agency over the phone on Wednesday.

A pipeline carrying Egyptian natural gas to Jordan has been bombed 16 times by unidentified man since the downfall of the Hosni Mubarak regime in early 2011. 

The pipeline was bombed only once under ousted President Mohamed Morsi, which led to the total suspension of natural gas deliveries to Jordan.

Jordanian Minister of Energy and Mineral Resources Mohamed Hamed told the AA last week that by the end of this year, the kingdom's losses from the suspension of Egyptian natural gas deliveries would amount to $5.24 billion.

Abdel-Rehim, however, said his company is mindful of the financial burden on Jordan as a result of the suspension of Egyptian natural gas deliveries.

Egypt's Ambassador to Jordan Khalid Tharwat said earlier that his country would never fail Jordan as far as natural gas is concerned.

"We [the Egyptian government] realize the importance of this issue for Jordan," Tharwat said. "It [the suspension of the delivery] has nothing to do with politics, but boils down to mere technical problems."

Egypt produces 5.7 billion cubic feet of natural gas every day, but it consumes 6.2 billion cubic feet, which forces it to import the amount to make up for the gap.

Egyptian Minister of Petroleum Sherif Ismail said earlier that his country seeks to convince foreign partners of speeding up the implementation of their natural gas development plans.

"Some new fields will start production during the second quarter of 2014," Ismail said.

International natural gas producers BG Group and Petronas said they would produce additional 400 million cubic feet of gas next year at investments worth $1.5 billion.

AA

Last Mod: 16 Ekim 2013, 18:18
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