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Jordan to use Egypt’s floating LNG regassification units: The Egyptian Natural Gas Holding Company (EGAS) signed an agreement with Jordan’s National Electric Power Company (Nepco) allowing Jordan shared use of one of Egypt’s LNG storage and regasification units over the next two years, according to statements here and here.
Why is this important? The agreement will enable Jordan to ensure it can process incoming shipments ahead of its fixed Aqaba LNG terminal slated for completion in 2026, according to Reuters.
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The LNG supply agreement will be through the use of floating storage and regasification vessels (FRSU), which is set to include:
#1- Boosting Jordan’s LNG supply: The agreement will see Egypt supply Jordan with LNG through established pipelines extending between both countries, which aims to contribute to reducing the operating costs of the LNG port in Aqaba as well as protecting the National Electricity Company from global price fluctuations.
#2- Prioritizing gas ships: The agreement also aims to prioritize the use of gas ships between both countries, with 350 mn cubic ft per day allocated to Jordan — 50% of the capacity of one vessel or 25% of the capacity two.
#3- Cutting costs: The National Electricity Company will be allowed to use LNG without incurring fixed costs. The contract also seeks to provide a flexible and less costly alternative to supply Jordan with LNG while new infrastructure projects are being implemented.
Previous LNG ties: Egypt was considering the purchase of a floating regasification unit in partnership with Jordan back in July to uptake and process LNG shipments for integration into their national grid. The ship would be leased out to other nations once both countries stabilize their gas supply.
