Law firm Trowers & Hamlins has advised the Ministry of Energy and Mineral Resources of Jordan on a LNG sale and purchase agreement with Royal Dutch Shell.
The firm worked with Navigant, Mapstone and Tractebel Engineering on the agreement that guarantees a five-year supply of LNG to the Kingdom and over the term has a value of several billion dollars.
This deal follows an agreement signed by the Jordanian government in July 2013 to lease a Floating Storage and Regasification Unit (FSRU) from Golar LNG Limited, which is moored in a purpose-built structure near the Red Sea port of Aqaba.
From July 2015, Royal Dutch Shell will supply 150mn cubic feet of LNG per day to the terminal in Aqaba.
This LNG will cover around 25% of the National Electric Power Company’s daily needs for power generation.
Tom Wigley, International Energy and Natural Resources partner at Trowers & Hamlins, commented: “This contract is the final step in an ambitious strategy to diversify energy resources in Jordan and meet the increasing energy needs of the Kingdom.
“Jordan imports about 96% of its energy needs and has increasingly looked to LNG – not only as a cheaper and cleaner alternative to diesel and heavy fuel oil – but also to ensure security of supply following disruptions in the gas pipeline from Egypt.”
