Jordan, Egypt sign amended gas agreement

Jordan and Egypt signed an amended gas-pricing agreement in Cairo on Wednesday, Minister of Energy and Mineral Resources Qutaiba Abu Qura said on Wednesday.

After attending the meeting of Arab electricity ministers in Cairo, Abu Qura said the agreement, which entails new prices, was signed after it was approved by the two countries’ councils of ministers.

The agreement was the outcome of negotiations between Jordanian and Egyptian officials in this regard, he told the Jordan News Agency, Petra.

Jordan relies on Egyptian gas to generate about 80 per cent of its electricity needs.

Abu Qura expressed Jordan’s thanks to Egypt, stressing the strong ties between the two countries.

In August this year, the Cabinet approved the agreement renewal.

Under an agreement signed between the two countries in 2001, Jordan is supposed to receive around 250 million cubic feet of gas annually.

Egyptian media outlets quoted Egypt’s Minister of Petrol Abdullah Ghurab as saying that the new prices will be imposed in retrospect from the beginning of this month, adding they will apply to the basic quantities agreed on under the contract, besides additional ones.

The new gas export prices are in line with the prices of the European markets, he said, noting that the prices will be reviewed in mid-2013.