Jordan plans to import Palestinian gas

18 August 2014

A field off the coast of the Gaza Strip could provide Jordan with 30 per cent of daily consumption

Jordan is planning to import natural gas from a field off the coast of the Gaza Strip by 2017, after agreeing a deal in principal with the UK’s BG Group, the company which owns the concessions rights.   

The Jordan Times reported that the National Electric Power Company (Nepco) plans to sign a letter of intent in early 2015 with the BG Group that could see 150-180 million cubic feet a day (cf/d) of gas imported from the Palestinian exclave via the Arab Gas Pipeline.

If the deal goes through the gas will provide about 30 per cent of Jordan’s daily consumption of 500 million scf/d used for electricity production.

Since 2011 Jordan’s energy sector has been hit by shortages of gas due to disruptions in the pipeline supply and has been forced to buy expensive fuel oil to meet the shortfall.

Jordan has said that the price it will pay for the gas is similar to the price it will pay the US’ Noble Energy for gas imports from an offshore field in Israel, which equates to about $6.50 per thousand cubic feet.

The BG Group in partnership with the Athens-based Consolidated Contractors International was awarded a 25-year lease on the field by the Palestinian Authority in 2005.  

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