Gas Supply from Egypt to Jordan Broken off Completely
Posted: 08/04/2014 02:08:36 Edited: 08/04/2014 02:08:22 Clicks: 893
On April 2, Ghalib, Secretary General of Jordan Energy & Mineral Resources Department said that gas supply from Egypt to Jordan had been broken off completely since the end of April, resulting in Jordan State Power Corporation suffering from enormous economic losses. By the end of May, the economic losses had reached 4.5 billion dollars.
Ghalib said that the quantity of gas imported from Egypt to Jordan had been decreased constantly since gas price fluctuating in the end of 2009. By April 20, 2014, gas supply had been broken off completely. Jordan State Power Corporation had to utilize heavy fuel oil and diesel oil to generate electricity. For that, energy costs had risen to 6.49 billion dollars.
It is reported that Egypt had supplied about 2.5 hundred billion cubic feet (7.075 million cubic meters) of gas to Jordan every day before. That 80% of gas is used for generating electricity by power sector. Budget report of 2014 published by Jordan State Power Corporation showed that accumulated deficit was 4.23 billion dollars by the end of 2013.
Jordan is a country having extremely scanty energy. 97% of energy relies on importing. In June 2001, Jordan signed gas sale contract with Egypt to transmit gas to Jordan daily through Arabic gas pipe which could meet 80% of demands for energy in Jordan. Since February 2011, Arabic gas pipe has suffered from 15 attacks successively. Continuous pipe damage caused interruption on gas supply, increasing price of power generation fuels. Egypt also adjusted gas contract with Jordan.
Under the pressure, Jordan has to adjust, formulating energy strategy planning from 2007 to 2020 to seek for diversification of gas supply approaches which plans to import energy from Saudi Arabia, Iraq and other countries. Moreover, Jordan also plans to develop gas, shale oil, renewable energy sources and other energies to realize diversification of energy and ensure energy security of country.
Ghalib said that the quantity of gas imported from Egypt to Jordan had been decreased constantly since gas price fluctuating in the end of 2009. By April 20, 2014, gas supply had been broken off completely. Jordan State Power Corporation had to utilize heavy fuel oil and diesel oil to generate electricity. For that, energy costs had risen to 6.49 billion dollars.
It is reported that Egypt had supplied about 2.5 hundred billion cubic feet (7.075 million cubic meters) of gas to Jordan every day before. That 80% of gas is used for generating electricity by power sector. Budget report of 2014 published by Jordan State Power Corporation showed that accumulated deficit was 4.23 billion dollars by the end of 2013.
Jordan is a country having extremely scanty energy. 97% of energy relies on importing. In June 2001, Jordan signed gas sale contract with Egypt to transmit gas to Jordan daily through Arabic gas pipe which could meet 80% of demands for energy in Jordan. Since February 2011, Arabic gas pipe has suffered from 15 attacks successively. Continuous pipe damage caused interruption on gas supply, increasing price of power generation fuels. Egypt also adjusted gas contract with Jordan.
Under the pressure, Jordan has to adjust, formulating energy strategy planning from 2007 to 2020 to seek for diversification of gas supply approaches which plans to import energy from Saudi Arabia, Iraq and other countries. Moreover, Jordan also plans to develop gas, shale oil, renewable energy sources and other energies to realize diversification of energy and ensure energy security of country.
