Egypt’s Ministry of Petroleum has reduced its gas exports to Jordan to 300m cubic feet per day (scf/day) in April, compared to 350m scf/day last month.
A source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that Jordanian needs of gas range between 290-300m scf/day at the current period.
The source added that the contract signed with the Jordanian Ministry of Energy to supply the country with natural gas is dynamic and subject to changes based on the available quantities after meeting the needs of the local market and the demands of the Jordanian side.
The Egyptian government signed an agreement with Jordan in 2004 for 15 years. It stipulates that 250m scf/day would be supplied for $2.5 per million thermal units (MTU), however, the government increased gas prices in April 2012, taking them up to $5 per MTU.
Egypt resumed exporting natural gas to Jordan in last September, through the pipeline linking the two countries, with quantities ranging from 50-100m scf/day.
The source pointed out that exporting gas to Jordan has contributed to the beginning of Egypt’s transformation into a regional hub for energy distribution, after reaching a state of gas self-sufficiency.
The agreement between Egypt and Jordan includes Egypt providing about 10% of the needs of Jordanian power plants of natural gas.
Noteworthy, that the Ministry of Petroleum signed an agreement with the Jordanian side to supply about 250m scf/day at prices different from what was stipulated in the previous agreement.
Minister of Petroleum Tarek El Molla is following with his Jordanian counterpart Hala Zowati the executive situation of the joint projects and the strategies between the two countries that have been developed to provide and diversify energy sources, especially natural gas.