Jordan issues gas pipeline tender to distribute Egyptian gas

Sep 03, 2001 02:00 AM

The Jordanian government issued a tender to construct a $ 170 mm gas pipeline within Jordan to distribute natural gas supplied by neighbouring Egypt. The pipeline forms part of a regional project agreed to by Egypt in January to provide natural gas to Jordan, Lebanon and Syria in the first stage, and Europe later. In June, Egypt agreed to supply Jordan with gas through a pipeline.

The 370 km (222-mile) pipeline will stretch from the Red Sea port of Aqaba to the Samra and Rehab Power Stations in northern Jordan, said Azmi Khreisat, head of the Tender Department at the Ministry of Energy and Mineral Resources. Construction is expected to begin in early 2002 and be completed a year later, Khreisat told.
He said the tender issued allows an international firm to be selected to build, own and operate the pipeline for 30 years, renewable for a similar period afterward. Khreisat said the project developer will buy Egyptian gas at the receiving point in Aqaba, where the state will set up storage facilities. The gas will be sold only in Jordan, he added.
Egypt will supply Aqaba with gas through an underwater pipeline, which is estimated to cost up to $ 330 mm. The pipeline will originate from Egypt's Mediterranean city of El-Arish, Khreisat said.

When the gas deal was concluded with Egypt in June, Egyptian officials then said Cairo will bear the cost of its part of the pipeline, capacity of which is estimated at 1 bn cm (35 bn cf) in the first year. The Egyptian gas supply to Jordan is the first stage of a regional network to which Lebanon and Syria -- as well as Europe at a later stage -- will be connected.
Egypt has abundant gas reserves estimated at 75 tcf. Jordan's gas reserves are estimated at 12 bn cm (420 tcf). The gas, mainly used to generate electricity, was discovered at al-Reesha fields on the eastern border with Saudi Arabia in 1987. Jordan doesn't have the ability to produce large quantities from al-Reesha.

Source: AP via Newspage
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