Jordan: Gas Oversupply Threatens Key Startups

1 Nov 2019POWER & WATERVol / Issue:62 / 44
2020 will be a crucial year for Jordan’s power sector, with gas imports from Israel, a 470MW oil shale project, and several renewables projects all set to start. But with multiple sources of power coming online at once, the energy ministry is looking to renegotiate IPPs and potentially delay project startups.
After a tumultuous decade in which Jordan struggled to secure long-term natural gas supplies and grow its domestic power generation, Amman looks to be on the cusp of an energy revolution. By 2022, the kingdom expects about 50% of its powergen to be sourced domestically (see chart 1) with the other 50% a steady supply of low-cost gas from Israel’s 22tcf Leviathan offshore gas field.

These key initiatives are set for imminent startup. Leviathan operator Noble Energy expects to open the wells and begin production in mid-December with exports to Jordan (and to Egypt) slated to begin 1 January per the 15-year 45bcm gas sales agreement (MEES, 30 August). The firm expects volumes to ramp up to over 200mn cfd within the first couple of months of operations, MEES learns, with 290mn cfd being the implied average volume throughout the contract. The politically sensitive deal which drew considerable skepticism is now two months from startup. (CONTINUED – 1429 WORDS)