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Amman, Cairo still apart on natural gas deal

Amman & Cairo have yet to close in on an amended natural gas deal, according to energy officials, as repairs are ongoing.
29.07.11 | Source: Zawya

According to Minister of Energy and Mineral Resources Khaled Toukan, Jordanian officials have yet to be informed by Cairo when pumping of Egyptian gas will resume, as both sides consider an amended gas agreement bringing an end to a favourable pricing structure under which Jordan received gas at prices less than half the international rate.


Egyptian authorities previously estimated that repairs on the pipeline, which were damaged on July 12 in what marked the second Sinai explosion less than a month, would take 7-10 days.


Earlier this year, attacks in February and April caused two separate six-week disruptions forcing the Kingdom's power plants onto their costly heavy oil and diesel reserves at a cost of $3 million per day.


According to the Ministry of Finance, the continuous disruptions in natural gas supplies cost the Kingdom JD637 million in the first half of the year.


Egyptian gas supplies have yet to return to pre-attack levels and prior to the most recent attack on the pipeline dropped to 60 million cubic feet - well below the 240 million cubic feet stipulated in a 12-year agreement between the two sides.

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