Gas from Israel

Last week it was reported that Jordan’s National Electric Power Co. signed a $15 billion deal to import gas from Israel over the next 15 years. 

This is the second deal and not with the government directly, but with companies; the first was $500 million with two mining companies.

The government immediately denied the news, and stated that the deal was only a memorandum of understanding and with the Texas-based Noble Energy.

The news item came after days from another that hinted at Jordan importing gas from Gaza, which was under a severe and brutal attack by Israel. The Gaza gas deal did not survive for long and instead the government stated it was buying from the Noble Energy, a US company established by Lloyd Noble in 1932.

However, a quick search would show that the Noble Groups is a partner in Israel’s Leviathan and that it was the company that discovered the Leviathon gas field off the shore of Israel in 2010. It is jointly owned and operated by Noble and two units of Israeli energy group, Delek (Delek Drilling and Avner Oil) as well as Ratio Oil, a company founded and operating in Tel Aviv.

In other words, the deal is indirectly with Israel.

Noble Energy recently confirmed that it also signed a $30 billion deal over 15 years with BG Egypt. 

The gas will be supplied to Jordan via a pipeline and to Egypt to an LNG plant — Jordan still does not have such a plant.

The two
deals would commit 80 per cent of Noble’s targeted initial sales. The Israeli government will make revenues from the two deals through royalties and taxes, which would help its recently battered economy.

But what about Jordan?

The deal would place Jordan’s energy source, and hence its economy, at the mercy of Israel.

The argument that this deal would add to a portfolio of other energy sources is bogus; Egypt also wants to import gas so that source is gone. Our supply from other countries is sporadic and unreliable. Hence, in time, the supply would increase and we would have our energy totally dependent on Israel’s whim. 

Furthermore, this will delay any efforts to develop the LNG plant in Aqaba which would enable us to import gas from anywhere.

Independence and sovereignty over one’s economy should trump the cost argument.

Moreover, the security requirements, given Israel’s hegemony and continued disregard for human rights, UN resolutions and the rights of Palestinian Arabs, makes the deal too risky, as evident from the 51-day war on Gaza.

The only solution in our case is to develop our own alternative solar and wind energy, as well as quickly produce our own shale oil.

Announcements of deals with Israel to supply gas to Jordan cannot be wise; we all know the difference between the smart and the wise: the smart know when to get off the wagon, the wise never get on it.

[email protected]