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Sep 28,2016 - Last updated at Sep 28,2016

The decision of the government-owned National Electric Power Company (NEPCO) to sign an agreement with Noble Energy Company to provide it with about 40 per cent of its energy needs from Israeli gas fields was not easy, but apparently necessary under the circumstances.

Jordan has no oil or gas to talk about, it depends on imports to generate electricity, gas supply from Egypt has been suffering umpteen disruptions and alternative energy, while ideal, seems to have difficulty taking off.

By importing gas, NEPCO can now sustain its electricity production targets at relatively affordable costs and sell electricity to the public at lower prices.

Under the deal, NEPCO stands to achieve an annual surplus of over $300 million, and thus avoid increasing electricity bills for Jordanian customers. At least this is what company representatives tell us.

It also tells the public that it will diversify its energy sources, but for the time being, the Noble Energy Company offer must have been favourable, to NEPCO and, by extension, to the citizens.

NEPCO had signed a letter of intent with Noble Energy in 2014 to supply its power stations with 300 million cubic feet of natural gas after weighing all available options.

It is not the only company to sign a deal with Noble; both the Arab Potash Company and the Jordan Bromine Company signed deals in 2014 to import 2 billion cubic metres of natural gas from it.

Of course, there are those who oppose the deal because the gas will come from Israeli offshore sources and because of several other issues, understandably.

But Jordan signed a peace treaty with Israel in 1994, by virtue of which the two countries can conclude deals when national interests require or justify them.

Business deals have little or nothing to do with politics, and importing gas from Israel does not mean that the country approves of Israel’s politics and practices against the Palestinians under occupation.

Jordan will no doubt continue to support the Palestinian cause and seek a fair and peaceful solution to the Israeli-Palestinian conflict.

But that is a different issue. 

 

The Kingdom has never let the Palestinians down.

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