Egypt has signed a comprehensive deal with Jordan that grants it access to the LNG floating storage regasification unit (FSRU) stationed at Sheikh Sabah port in Aqaba, according to a statement.
The primary objective of the agreement is to maximise the resources of both countries with enhanced efficiency and reduced costs, the statement from Egypt’s Ministry of Petroleum and Mineral Resources added.
As part of the agreement, the Jordanian side will receive LNG from Egypt and pump back some of the natural gas through trans-border pipelines to the African country if needed.
FSRU terminals play a vital role in the value chain of liquefied natural gas, serving as the crucial link between LNG carriers and the local gas supply infrastructure.
EGAS, the Egyptian company, and the Jordanian-Egyptian company Fajr have reached a collaborative agreement to provide the Jordanian industrial sector with natural gas, utilising the existing infrastructure that extends to Jordan.
The cooperation comes within the framework of reducing operational costs for Jordan’s electricity system and enhancing the security of the energy supply for the two countries.
This agreement allows Egypt to utilise the FSRU for the remaining duration of its charter contract.
While the FSRU is under the jurisdiction of the Jordan National Electric Power Corp. (NEPCO) until 2025, Jordan will still have the flexibility to import occasional LNG cargoes.
This bilateral agreement also aligns with Jordan’s plan to launch a national natural gas program aimed at supplying industry and homes in Amman and the city of Zarqa, supported by Egyptian investments.
