Egypt resumes gas deliveries to Jordan, not Israel (JERUSALEM POST) By AMIRAM BARKAT/GLOBES 05/18/12)
JERUSALEM POST Articles-Index-Top
Egypt has resumed natural gas deliveries to Jordan, even as it has
severed supplies to Israel and canceled the gas sale contract with
East Mediterranean Gas Company (EMG), in which Yosef Maiman in a
shareholder, Globes reported Thursday.
Until now, both Israel and Jordan were affected by the multiple
attacks on gas pipelines in Sinai, which halted deliveries for 200
days in 2011, and stopped them almost entirely since the beginning of
2012. However, while deliveries to Jordan are due to resume this
month, Israel will get nothing. The Egyptian Natural Gas Company
announced that deliveries to Jordan will gradually increase from 500
million cubic meters a year to more than 1.5 billion cubic meters
Jordan consumes 3.5 BCM of natural gas a year, most of which is
supplied by Egypt, under a 2002 agreement. Before the fall of the
Mubarak regime in February 2011, Egyptian gas generated 80% of
Jordan´s electricity, compared with 20% of Israel´s.
The disruptions in Egyptian gas deliveries forced Jordan to increase
its expenditures on alternative fuels for generating electricity from
$1.4 billion in 2011 and will spend an estimated $2 billion in 2012.
Israel was forced to increase its spending on alternative fuels to
NIS 12 billion (over $3 billion). However, the comparative cost to
Jordan is far higher, given that its GDP is a tenth of Israel´s.
But whereas Israel has raised electricity rates 25% following the
crisis in Egyptian gas, Jordan´s parliament refused to approve
similar measures, forcing the government to subsidize the extra
expenditures in full from the state budget.
Egyptian gas deliveries to Jordan began to decline in 2010, when
president Hosni Mubarak was still in power, due to domestic gas
shortages. Egypt delivered 3.1 BCM of gas to Jordan in 2009, 2.26 BCM
in 2010, and 0.88 BCM in 2011, as the disruptions kicked in.
Egypt delivered 2.1 BCM of gas to Israel in 2010 and 0.7 BCM in 2011.
(© 1995-2011, The Jerusalem Post 05/18/12)
Return to Top
MATERIAL REPRODUCED FOR EDUCATIONAL PURPOSES ONLY