Amman, Feb 20: Jordan and the US have signed a 15-year natural gas deal worth $771 million, which may enable gas supply through a pipeline by the beginning of 2016.
The deal was signed between Jordan’s Arab Potash Company and US-based Nobel Energy to provide the potash company with natural gas. The supply of natural gas is expected to start early 2016, Xinhua quoted the Jordanian company as saying in a statement Wednesday.
Under the 15-year agreement, the US company, which is a partner in Tamar’s gas field in Israel, will provide natural gas to the Jordanian company through a pipeline.
The deal will reduce the company’s production costs, enhance its competitiveness in the global market and its profitability, improve the prospects for future growth and expansion, and help protect the job security of the company’s over 2,000 employees, said Jamal Sarayreh, the potash company’s chairman.
Arab Potash Company General Manager Brent Heimann said the shift from heavy fuel to the less expensive and more eco-friendly natural gas is projected to produce total cost savings of 235 million dinars, or average savings of 11 dinars per tonne of potash produced.
In January 2014, Noble Energy had signed an agreement with the Palestine Power Generating Company for the supply of natural gas.