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‘Algeria, Jordan in discussions over potential gas deal’

By JT - Oct 19,2016 - Last updated at Oct 19,2016

AMMAN — Algeria’s Sonatrach will provide Jordan with an offer detailing the prices of liquefied natural gas (LNG) it plans to supply to the Kingdom to cover part of its needs of LNG, according to the Ministry of Energy and Mineral Resources.

The ministry said on Tuesday that meetings were held recently between Jordanian and Algerian officials to look into means to put into implementation a memorandum of understanding signed between the two countries in May.

Jordan’s annual needs of natural gas stand at 5 billion cubic metres per year.

The memorandum of understanding sets the quantities and prices Algeria can offer to Jordan.

Algeria’s Sonatrach will also cooperate with Jordan in the field of oil and gas exploration in the Kingdom under the deal.

Around 85 per cent of the Kingdom’s electricity is currently generated via imported LNG. Jordan imports about 97 per cent of its energy needs annually.

Several activists have been calling on the government over the past few weeks to focus on importing gas from several countries, including Algeria as an alternative to a deal the government signed recently to import gas from Israel, which angered the public and resulted in demonstrations in protest against the deal. 

But Prime Minister Hani Mulki has previously said the deal is a matter of national interest, and that it would pave the way for the Kingdom to find new energy sources while providing Jordan with the cheapest source.


NEPCO officials say the gas deal with Noble Energy would “save Jordan up to $600 million each year”, with around 300 million cubic feet imported by the Kingdom daily.

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