Shell Close LNG Supply Deal with Jordan

Shell, Jordan close LNG supply deal

Shell reached a deal with Jordan’s National Electric power company, for the supply of LNG starting from July. 

According to Jordan’s Minister of Energy and Mineral Resources, Mohammad Hamed, Shell will supply Jordanian FSRU in Aqaba with 4.2 MMcm of gas per day for a period of five years, The Jordan Times reports.

Jordan agreed to pay around $500 million per year for LNG supplies. As minister Hamed said, Jordan’s Nepco will look to buy further 2.8MMcm of gas per day from the international markets.

Jordan, which is looking to cut its dependence on heavy fuel oil for power generation is in the process of completing the infrastructure to start up its receiving LNG terminal in Aqaba. Infrastructure is 75% complete, adds Hamed.