Thursday, 28 October 2010

Jordan keen to sign gas agreement with Egypt

The Jordanian government is keen to sign an agreement with Egypt to increase natural gas supplies into the country. Jordan's Minister of Energy and Mineral Resources Khalid Irani has said that government officials are working closely with their Egyptian counterparts on an agreement to boost natural gas imports.

At the moment, Jordan receives 240 million cubic metres of gas from Egypt per year as stipulated in a 2004 agreement under which Cairo supplies Amman with natural gas at preferential prices. Under the new agreement, Jordan would receive and addition one billion cubic metres of gas. Sixty per cent of Jordan's electricity is produced from natural gas with the remained derived from oil and diesel.

Irani said that the new agreement was prompted by the fact that shortages in natural gas supplies over the summer forced Jordan to rely on diesel and heavy oil for 80 per cent of the country's electricity generation. He said this was due to the fact that Egypt faced availability shortages related to the expansion and maintenance of its natural gas wells. Irani stressed that Jordan will continue to seek alternative sources of gas and hoped that the demand can be met by Egypt.

Source: Jordan Times

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

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