Jordan is in need of gas, including from Azerbaijan

Jordan is in need of gas, including from Azerbaijan

Azerbaijan, Baku, Feb. 27 / Trend /

Leyla Abdullayeva, Trend analytical centre expert

In the last two or three years, Jordan began to think about new ways of gas supply to the country. Due to political problems experienced by Egypt, Jordan lacks gas supplies and, according to official data, Jordanian losses on the short supply of Egyptian gas total nearly $ 1billion or more annually. Earlier, Jordan covered about 80 percent of the country's demand for gas through imports from Egypt.

Starting February, Egypt cut the gas supply to Jordan by 36.4 percent, from 220 million cubic feet to 140 million cubic feet. According to Egyptian media, the decline in supply is associated with the reduced production in certain fields of gas due to periodic maintenance of fields. The date of resumption of gas supplies to Jordan in full is not announced.

Earlier, irregular supply of Egyptian gas to Jordan was associated with the complicated political situation in Egypt. Egypt, a major exporter of natural gas to Jordan, itself felt an acute need for the "blue" fuel. In the past, the Egyptian section of the Pan-Arab gas pipeline has frequently been the target of terrorist attacks, which led to a break in gas supplies to Jordan. Then, in May of last year, Egypt suspended gas supplies under the contract as long as there is no new agreement with the Jordanian side, setting a higher price. In October, Egypt doubled the price of gas exported to Jordan.

For this reason, Jordan, which itself produces nearly 30 million cubic feet of gas per day, was facing the energy crisis due to difficulties associated with the need of meeting almost 10 percent of the country's electricity needs. Jordan was forced to raise domestic fuel prices for gas by up to 50 percent. This step automatically resulted in inflation and increase in the cost of basic food, which in its turn caused discontent. Due to gas supply interruptions, Jordan was forced to spend by $ 1.4 billion in 2011 and $ 2 billion in 2012 more on alternative fuel, needed to produce electricity.

Today, Jordan is ready to import gas into the country from other sources in order to reduce dependence on Egyptian gas. In particular, Jordan is in talks with countries such as Qatar, Saudi Arabia, Israel, Iran and Iraq. Purchase of gas from Azerbaijan is also on the agenda as an option.

Currently, possibility of liquefied natural gas purchases from Azerbaijan are considered as one of the convenient ways for gas supplies to Jordan and discussions are underway regarding this matter.
Acquisition of Azerbaijani gas in liquid form, in avoidance of the pipeline transportation, would have been most convenient. In addition to the difficult situation with continued purchases of gas from Egypt, it will also be difficult for Jordan to get natural gas via the pipeline going through Syria, where today the political and economic situation is no better than in Egypt.

This gas issue has been discussed between the two governments for the past few years, but implementation of the project is delayed due to some problems. The primary constraint is that Jordan is not ready for the reception and storage of Azerbaijani gas. The project for exports of liquefied natural gas from Azerbaijan will acquire a more clear shape upon completion of construction of the new terminal for reception of liquefied natural gas in the Jordanian port of Aqaba. It is known that Jordan is working on preparing the infrastructure for reception of Azerbaijani gas, and following completion of these works, talks between the parties will acquire a clearer format.

Another two options for delivery of Azerbaijani gas to Jordan have also been discussed: Azerbaijani gas may be delivered to Jordan by sea route from Turkey and land route - through joining the Azerbaijani-Turkish gas pipeline to the pan-Arab pipeline. Then it became clear that delivery of Azerbaijani gas by sea is unprofitable for both countries, and connecting the Azerbaijani-Turkish gas pipeline to the pan-Arab pipeline will take time.

In the long term, export of Azerbaijani gas to Jordan is possible with Azerbaijan becoming an important exporter of gas to Jordan. According to the Ministry of Energy of Jordan, in the case of an agreement, the country plans to purchase from Azerbaijan nearly 4.2 million cubic meters of gas per day (150 million cubic feet), which is more than 1.5 billion cubic meters of gas a year.

Subscribe to Trend in Google News! Subscribe
Iran's Energy Exchange announces products to be on sale on October 24
Iran's Energy Exchange announces products to be on sale on October 24
IRENEX shares data on sales of Sepahan Oil Company in energy exchange
IRENEX shares data on sales of Sepahan Oil Company in energy exchange
Azerbaijani oil prices increase
Azerbaijani oil prices increase
Loading Bars
Latest
Tesla hikes price of Model X, Model S variants by $5,000
IRICA shares data on import of COVID-19 vaccine to Iran
Japan keen to invest in restoration of Azerbaijan's liberated lands
1,677 more COVID-19 cases reported in Kazakhstan
1 dead, 7 injured in shooting at off-campus party near Georgia university
Tesla posts a $1.62 billion profit in Q3 despite difficult car market
198 illegal migrants rescued off Libyan coast
10 envoys to be declared persona non grata: Erdogan
UN's Guterres welcomes Saudi Arabia's climate initiatives in call with King Salman
Presidential elections to be held in Uzbekistan
UK says substantial differences remain with EU over N.Ireland trade
New migrant caravan in Mexico pushes past blockade to head north
Aramco aims for net zero emissions from operations by 2050, CEO says
U.S. administers nearly 413 mln doses of COVID-19 vaccines
Chronicles of Victory: Azerbaijani president gives interview to Le Figaro newspaper on October 24, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 24, 2020
Buy/sell operations at Iran Mercantile Exchange growing
Iran unveils details of its trade turnover via Astara customs
Putin invites Israeli prime minister to visit St. Petersburg
Iran's Energy Exchange announces products to be on sale on October 24
Turkmenistan launches production of new types of paving slabs
Azerbaijani banks ramp up business lending since early 2021
Georgia and Ukraine talk cooperation within European integration
Iran reveals COVID-19 data for October 23
UK records another 44,985 new coronavirus cases
Tactical-Special Exercises of Azerbaijani Special Forces end (VIDEO)
First Vice-President Mehriban Aliyeva shares photos from visit to Zangilan with President Ilham Aliyev (PHOTO)
Azerbaijani, Iranian FMs talk recent relations developments
Members of Nizami Ganjavi International Center join call towards cop26
Arayik Harutyunyan's visit to Russia is solely private - embassy of Azerbaijan
NATO not ready for equal dialogue with Moscow - Russian defence chief
Saudi-led coalition says destroys Houthi vessels, bomb-laden boats site
Kazakhstan updates forecast for completion of grain harvesting
IRENEX shares data on sales of Sepahan Oil Company in energy exchange
EIB to help reduce COVID-19 effects on Georgian SMEs
Moscow comments on reports about holding Russia-Armenia-Azerbaijan summit on Nov.2021
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,315 more COVID-19 cases, 981 recoveries
First Vice-President Mehriban Aliyeva shared footage from Zangilan visit on her Instagram page (VIDEO)
Turkmenistan to participate in EXPO-2025
Georgia and Ukraine sign protocol on economic cooperation
Weekly review of key events in Azerbaijan's ICT sector
Azerbaijan's liberated lands to contribute to expansion of TRACECA corridor - minister
Weekly review of main events in Azerbaijan's transport sector
Saudi Arabia targets net zero emissions by 2060
Russia registers an all-time high of 37,678 coronavirus cases in past day
Uzbekistan eyes foreign technology for better local polymer production
Turkmen delegation to pay working visit to Iran
Azerbaijan records growth in loan portfolio of local banks in 9M2021
Turkmenistan’s Turkmenbashi refinery eyes producing hydrogen
Azerbaijan, Singapore to co-op in construction of geostationary satellites
IRICA shares data on Iran's trade turnover with SCO member states
Iran sees increase in exports of non-oil products from Hormozgan Province
Weekly review of Azerbaijani precious metals market
Kazakhstan unveils trade indicators with its TOP-3 EU partners
Turkmenistan approves new procedure for allocating investments from Stabilization Fund
Azerbaijani MoD observes exercises in liberated Lachin district (VIDEO)
Russian Health Ministry greenlights joint COVID-19 and flu vaccination
Central Bank discloses volume of loans issued to Azerbaijan's districts
Georgia records surge in tourist visits from Uzbekistan
Tourist inflow from Kazakhstan to Georgia soars
Iran boosts exports through customs of Zanjan Province
Azerbaijan notes decrease in banking sector' profit
Azerbaijan sees rise in mortgage lending
Iranian currency rates for October 23
Weekly review of Azerbaijani currency market
Georgia releases data on COVID-19 cases for October 23
New customs post in Azerbaijan to speed up cargo movement along North-South corridor (PHOTO)
Azerbaijan, Armenia to sign new documents in Moscow
Azerbaijani oil prices increase
Georgia sees decrease in tourist inflow from Azerbaijan
Turkmen company to purchase material, technical resources via tender
Kazakh energy company opens tender to buy metal corners
Kazakh oil company opens tender to buy spares
Kazakh KazMunayTeniz opens tender for Caterpillar equipment maintenance
Azerbaijan's Central Bank unveils data on currency exchange operations for Jan. through Sept. 2021
Azerbaijani fund presents concept for restoration of liberated territories
EDB purchases bonds of Kazakh KEGOC JSC
US corporate workers to start returning to offices next month
Iran changes pricing of petrochemical products at its mercantile exchange
Iran's foreign exchange needs trigger to expand exports
Surge of energy prices puts Europeans in stalemate (VIDEO)
Chinese company opens massive eco-friendly mine in Serbia
Kazakhstan’s daily COVID-19 case count stands at 1,732
Georgian honey exports skyrocket, following COVID-ravaged year
Iranian envoy, head of Georgia's State Security Service meet
Turkey announces commissioning date for logistics center in Sivas (Exclusive)
US military eliminates one of Al-Qaeda leaders in northwest Syria
Mutation of Delta variant may be more transmissible: UK health agency
Biden, Macron discuss cooperation, to meet in Rome late October
India, UK working on free trade agreement: Harsh Vardhan Shringla at India Global Forum
Turkey reports 28,192 daily COVID-19 cases
G7 countries reach breakthrough on digital trade and data
India perhaps only G20 country to fulfil...: India ahead of COP26 climate summit
U.N. plane aborts landing as air strike hits Ethiopia's Tigray
Relations with India stronger than ever, says Maldives Defence Minister
Chronicles of Victory: October 23, 2020
Iranian delegation leaves for Tashkent to observe elections
UK PM Johnson says fresh COVID lockdown not on the cards
2 soldiers, terrorist killed in northwestern Pakistan's clash
All news