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Trowers & Hamlins advises on LNG contract

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LNG Industry,

Trowers & Hamlins, an international law firm, has confirmed that it advised the Ministry of Energy and Mineral Resources of Jordan on an LNG sale and purchase agreement (SPA) with Royal Dutch Shell.

Fellow consortium members, Navigant, Mapstone and Tractebel Engineering, also advised on the SPA, which was recently signed, guaranteeing a five year supply of LNG to Jordan. 

The deal follows an agreement signed by the Jordanian government in July 2013 to lease a Floating Storage and Regasification Unit (FSRU) from Golar LNG Ltd, which is moored in a purpose-built structure near the Red Sea port of Aqaba.

From July 2015, Royal Dutch Shell will supply 150 million ft3/d of LNG to the terminal in Aqaba, which will cover approximately 25% of the National Electric Power Company's daily needs for power generation. 

Trowers & Hamlins has worked closely with the Jordanian government since 2012 to assist in the implementation of its LNG import strategy. The consortium advised on the project feasibility, time charter party agreement for the FSRU in Aqaba and on the subsequent tender process for the supply of LNG. 

Tom Wigley, International Energy and Natural Resources partner at Trowers & Hamlins, said: "This contract is the final step in an ambitious strategy to diversify energy resources in Jordan and meet the increasing energy needs of the Kingdom.  Jordan imports about 96% of its energy needs and has increasingly looked to LNG – not only as a cheaper and cleaner alternative to diesel and heavy fuel oil – but also to ensure security of supply following disruptions in the gas pipeline from Egypt. We are very pleased to have been involved in this project since its inception."

Richard Bass, Director at Navigant, added: "The execution of the LNG project’s first supply contract is a significant milestone for Jordan. The LNG import terminal will enable Jordan to make significant savings on its energy import costs and greatly enhance fuel supply flexibility. We are proud to have supported the Ministry of Energy and Mineral Resources validate the initial concept and assist in the project’s execution. Our team is continuing to provide advice on the implementation of the project and we are looking forward to the commissioning of the terminal later this year."

Adapted from press release by

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