Jordan, Shell Sign Gas Deal

Royal Dutch Shell has inked a deal to supply LNG to Jordan’s National Electric Power Company, country’s Minister of Energy and Mineral Resources Mohammad Hamed said Wednesday.

As per the five year agreement, Shell will supply 150 million cubic feet of LNG per day to a terminal in Aqaba. Jordan will pay $500 million per year for the fuel supply, reported Jordan Times newspaper.

"This is a very important deal for Jordan and part of our efforts to diversify energy resources," Hamed told Jordan Times.

The quantities Shell will supply each day cover some 25 per cent of the power company's daily needs for power generation, the minister said.

Hamed also said that the power company will start buying 100 million cubic feet per day from international markets starting July.

The minister added that work on the terminal is about 78 per cent complete and that all necessary equipment and measures are already in place to start receiving the LNG, Jordan Times reported.