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Israeli consortium signs gas deal with Jordan

  • by Leah Brady
  • in Worldwide
  • — Sep 27, 2016
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Production is expected to begin around 2019 or 2020.

The deal has still to receive regulatory approvals from the Israeli and the Jordanian authorities and agreement for the gas transport has to be agreed upon between the Natgas, Israel Natural Gas Lines and its Jordanian equivalent, FAJR.

"The government prefers to support the terrorist Israeli entity with billions of dollars through the deal instead of investing in renewable energy projects and creating jobs for Jordanians who suffer from high unemployment rates", said the Jordanian National Campaign Against the Gas Agreement with the Zionist Entity. According to the deal, Israel will supply the Arab country with gas from the Leviathan gas field.

The firms in 2014 signed a letter of intent to sell roughly 1.6 trillion cubic feet of natural gas to Jordan'sNational Electric Power Co. over 15 years from Leviathan.

In September 2014, NEPCO signed a letter of intent with Noble Energy to research the possibility of supplying its power stations with around 300 million cubic feet of gas from the Mediterranean field off the coast of Haifa.

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Senior level officials from the Israelis gas partners welcomed the signing of the deal.

The Leviathan group has also been in talks to export much larger quantities of gas to companies in Egypt.

Jordan has no proven and exploitable oil and gas reserves.

The deal "positions the Leviathan project in the center of the regional energy map", Yossi Abu, chief executive officer of Delek Drilling, said in a separate statement e-mailed on Monday. It is a 15-year contract for the overall export 45bn m³ of gas worth an estimated $10bn or an average of $6.2/mn Btu. Delivery of that gas will begin in late 2016, Noble said Monday.

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