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Securing supplies to Jordan

LNG Industry,


Since 2005, Jordan has relied heavily on gas imported from Egypt via the Jordan Gas Transmission Pipeline (JGTP) for electricity generation. Over the past two years, the supply of gas from Egypt has been severely interrupted through numerous attacks on the pipeline in the Sinai.

Importing LNG offers greater security of supply and flexibility to the Hashemite Kingdom, as LNG can be imported on long-term contracts or through spot transaction on a cargo-by-cargo basis, to meet both increased demand and fluctuations in demand. To enable Jordan to import LNG, the Council of Ministers of the government of Jordan gave approval for the development of the Jordan LNG Project.

The Jordan LNG Project covers all aspects of the supply chain required to deliver LNG, including:

  • Arrangements for the import of LNG.
  • The lease of a floating, storage and regasification unit (FSRU).
  • The financing and construction of the required infrastructure in Aqaba that includes both marine and onshore facilities.

The implementation of the project will help Jordan to overcome any shortfall in the supply of Egyptian gas and to meet the increase in Jordan’s gas demand over the next 5 – 10 years. The natural gas delivered by the project will provide a consistent supply to Jordan’s power stations.

The Aqaba LNG Project comprises four separate contracts that have to be integrated to realise the overall project, from supply through to transmission. The following parties were responsible for the four contracts:

  • Shell – LNG supply.
  • Golar – FSRU supply and operation.
  • BAM International - MAG Engineering and Contracting Company joint venture (BAM-MAG JV) – marine and land-based terminal project works under the engineering, procurement and construction (EPC) contract, worth US$65.5 million.
  • Jordanian Egyptian Fajr Company (FAJR) – transmission of the natural gas via hot tap into the company’s 36 in. pipeline.

Marine and landside works

The BAM-MAG JV has completed the design, procurement and construction of offshore works...


This article originally appeared in the June 2015 issue of LNG Industry. To read the full version of this article, sign in or register for a free subscription today.


Written by Howard McDonagh, BAM International, Jordan. Edited by Katie Woodward

Read the article online at: https://www.lngindustry.com/special-reports/17062015/securing-supplies-to-jordan-special-report/


 

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