Jordan and Egypt Forge Energy Cooperation: A Bright Future Ahead
Amman, Jordan – In a landmark move that promises to reshape regional energy dynamics, Jordan and Egypt signed an agreement on Monday that will significantly enhance their energy cooperation. This new partnership allows Jordan to utilize Egypt’s floating storage and regasification units (FSRUs) over the next two years, paving the way for more efficient and cost-effective energy solutions for both nations.
Sofyan Batayneh, the Director General of Jordan’s National Electric Power Company (NEPCO), and Yassin Mohamed, the Chairman of the Egyptian Natural Gas Holding Company (EGAS), put pen to paper in a ceremony held in Cairo. Attendees included high-ranking officials such as Saleh Kharabsheh, Jordan’s Minister of Energy and Mineral Resources, and Egyptian Minister of Petroleum and Mineral Resources Karim Badawi, among others.
Kharabsheh expressed enthusiasm about the agreement, labeling it a pivotal milestone for Jordanian-Egyptian energy relations. He emphasized the agreement’s role in maximizing resource utility and reducing operational costs. “This collaboration will allow us to enhance our energy landscapes, ensuring both nations benefit while optimizing resource management,” he stated.
Jordan’s strategic reliance on Egypt’s FSRUs will continue until 2026 when an onshore regasification facility in Aqaba is expected to come online. Under the recently signed pact, Jordan will have access to 350 million cubic feet of natural gas per day, which is roughly 50% of the capacity of one FSRU. This arrangement is projected to keep costs significantly lower, with Jordan’s LNG shipments costing about million each, in addition to million for transport.
Total spending on LNG is expected to be capped at million annually, a striking decrease from the million currently spent on the Aqaba LNG terminal, underscoring the financial benefits this agreement brings.
Highlighting the strategic implications of this partnership, Batayneh noted that it ensures a dependable supply of LNG, crucial for maintaining energy security during emergencies. “This agreement is not just about reducing costs; it reflects a shared vision for enhancing the efficiency and affordability of energy in our region,” he remarked.
As Jordan expands its horizons in energy cooperation with Egypt, this agreement showcases the power of collaboration in the Middle East. By optimizing shared resources, both nations are setting a compelling example for regional cooperation and sustainability.
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