Jordan Signs Deal to Use Egyptian FSRU Until 2026

(Reuters) - Egypt and Jordan have signed an agreement to allow Jordan to use an Egyptian floating storage and regasification unit (FSRU) until 2026, Jordan's energy ministry said on Monday.

The FSRU will help Jordan secure liquefied natural gas supplies in case of emergencies ahead of the completion of the Aqaba LNG import terminal scheduled in the fourth quarter of 2026.

The agreement includes determining priority use for FSRU between both sides in case of simultaneous needs, with around 350 MMcfgd allocated to Jordan.

This would represent 50% of the LNG capacity of a single FSRU, or 25% in case of additional capacity.

The ministry estimated the cost of gas at around $3 million per shipment and $5 million to transfer gas through the Egyptian gas grid. It said the cost of LNG bought by Jordan annually would not exceed $10 million.

The agreement comes under efforts to provide Jordan with a less costly mechanism to supply LNG, according to the statement.

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