The companies working on Israeli natural gas field Tamar have signed a new $200 million agreement to supply more gas to Jordan, Israeli business daily Globes reported on Monday.
The Tamar partners inked an additional gas deal with Jordanian customers including the Amman-based joint venture Bromine Company Ltd. and the Arab Potash Company.
In September 2016, the operating companies of Israel's Leviathan natural gas field had agreed to provide natural gas to Jordan over a 15-year period. Jordan's National Electric Power Company Ltd. agreed to receive a total of 45 billion cubic meters (bcm) of natural gas as part of the agreement.
The new interruptible contract will supply on demand up to 1 bcm of natural gas, with a stipulation that the Jordanian companies are not obliged to buy the entire volume, according to Globes.
The new agreement will ensure that Jordan can diversify its supply of gas and potentially receive cheaper prices in comparison to its other suppliers including Israeli pipeline gas or LNG resources.
"The deal, whose value is likely to reach $200 million, will go into effect in the first quarter of 2019 and continue until the supply termination date in the 15-year agreement, until the end of 2032," according to the Globes report.
By Muhsin Baris Tiryakioglu