Jordan and Egypt have recently signed a significant energy cooperation agreement to enhance natural gas infrastructure and supply. This deal enables Egypt to utilize the floating storage regasification unit (FSRU) at Aqaba’s Sheikh Sabah port, which will support both Jordanian and Egyptian energy needs. The agreement includes plans for Jordan to receive liquefied natural gas (LNG) from Egypt, which will later be pumped back to Egypt through transborder pipelines if necessary.
Jordan’s National Electric Power Company (NEPCO) and Egypt’s EGAS are central to this collaboration, aiming to reduce operational costs and ensure energy security. This agreement is part of Egypt’s broader strategy to boost gas exports, leveraging its growing natural gas production, which saw a substantial increase in recent years. The partnership also aligns with regional initiatives to expand infrastructure, including the Arab Gas Pipeline, which connects Egypt to Jordan and beyond, supporting the energy needs of multiple Middle Eastern nations.
This cooperation underscores the countries’ shared goals of enhancing energy stability, cost-efficiency, and infrastructure connectivity in the region. Jordan and Egypt signed an agreement to establish a pipeline to supply natural gas to Al Quweira Industrial Estate in Aqaba, officials said. The deal, signed by the aqaba development corporation and Egypt gas company , aims to develop a natural gas pipeline network and necessary infrastructure in the area, according to the Jordan News Agency, Petra.
Energy and Mineral Resources Minister Saleh Kharabsheh said the project will alleviate the burden on the industrial sector, reduce production costs, and create new jobs. The minister also highlighted natural gas’s positive impact on the sector, noting that its relatively lower cost compared to other fuels would benefit industrial estates, which are heavily impacted by high energy costs.
ADC CEO Hussein Safadi said the project will increase reliance on natural gas for production processes in the Al Quweira Industrial Estate, particularly in medium and heavy industries.
The project is expected to take around 11 months to complete and will initially supply 30,000 cubic meters of gas per hour, with the capacity to expand to 90,000 cubic meters per hour in the future.
