EGYPT EXPECTS TO RESUME GAS EXPORTS TO JORDAN BY 2021

Egypt’s Minister of Petroleum and Mineral Resources Tarek El Mola said Egypt is expected to resume natural gas exports to Jordan by 2021.

“We have made new discoveries of several gas fields and this will help us gradually meet our rising local demand and then be able to resume our exports,” El Mola said in remarks to the press on the sidelines of the Jordan International Energy Summit.

Egypt has recently signed 66 concession agreements to increase its gas output and it will make several announcements very soon of new discoveries of gas fields, he added.

He added that Al Zohr gas field, which was discovered recently, will start production in December of 2017, which will increase output.

Egypt’s current production of natural gas stands at 4 billion cubic feet (BCF) per day, while its needs amount to around 5.2 bcf per day, which forces it to resort to imports.

By 2021, Egypt will be able to produce around 6 bcf per day due to the increase in production and rehabilitation of many fields, he said.

Jordan used to get around 80 percent of its needs of natural gas from Egypt. Gas supply was repeatedly disrupted and came to a complete halt in early 2014.

Jordan imports about 97 percent of its energy needs annually.

Meanwhile, the Jordan Petroleum Refinery Company (JPRC) said it started talks with several equity and loan providers to implement a 1.6-billion-U.S. dollar project to expand the capacity of the country’s sole refinery.

“This is a very important project as the last time the refinery was expanded in 1982. We have conducted the feasibility study on the project already,” JPRC CEO Abdul Karim Alaween said during the Jordan International Energy Summit Monday.

The expansion project entails increasing the refinery’s capacity from 70,000 barrels per day to 120,000 barrels per day, according to Alaween.

“One of the main objectives of this project is to stop producing high sulfur fuel oil. It will also help meet rising demand on fuel that is witnessing a 3 percent increase every year,” said Alaween.

The project will help meet international standards as well, he added.

Source: Nam News Network