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Egypt Resumes Gas Exports To Jordan

The Egyptian Natural Gas Company (Gasco) announced on 3 May that gas exports to Jordan via the Arab Gas Pipeline (AGP) were to start shortly at the rate of 50-70mn cfd. According to Gasco’s head Khalid 'Abd al-Badi' these limited quantities are being exported on a trial basis to ensure the safety of the pipeline following the completion of maintenance work on the pipeline, which was recently bombed for the 14^th time since February 2011. The Gasco head added that the gas flow could rise to 200mn cfd depending on operational and safety considerations. Egypt on 19 April terminated its gas supply agreement with Israel due to differences over delayed payments and interrupted supply (MEES, 30 April).

A Jordanian government source announced at the end of April that Egypt informed Jordan’s Ministry of Energy and Mineral Resources that the resumption of gas export to Jordan will start at the rate of 100mn cfd rising to 150mn cfd in due course. Officials in charge of Jordan’s electricity sector estimate that the kingdom had received 87mn cfd in 2011, down from 220mn cfd in 2010 and 300mn cfd in 2009. The loss of Egyptian gas, which fuels some 80% of power generation plants in Jordan, is estimated to have cost an additional  JD1bn ($1.4bn) in 2011, to cover the cost of fuel oil imports from other sources to replace the gas. Jordan is considering plans to import gas from Qatar and other sources in the future, in case Egyptian supply becomes unreliable.

© Copyright MEES 2012.