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Jordan, Egypt to Sign Natural Gas Deal

Source: Ahram Online 8/28/2011, Location: Africa

New deal will place a greater premium on Egypt's natural gas, which supplies 80 per cent of Jordan's energy needs Jordan's energy czar says his country will sign an agreement with Egypt next month to resume natural gas supplies.

Energy Minister Khaled Toukan says several attacks this year on Egypt's pipeline delivering the fuel may prompt Jordan to look for alternatives, but Jordan will now try to use Egyptian gas to meet its energy needs.

Toukan said Sunday the agreement stipulates higher costs, but declined to say how much. Jordan depends on Egyptian gas to generate 80 per cent of its electricity. The resource-poor country has resorted to heavy fuel and diesel to keep national power plants running. The shift cost Jordan $4.2 million a day.

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