Egypt Independent

Govt reiterates intent to raise prices for gas exports to Jordan

Egypts petroleum minister has reiterated the government's intent to raise the price for gas exports to Jordan without increasing the supply. 
At an economic summit in Doha on Monday, Petroleum Minister Abdullah Ghorab said the government believes the export contract is unsuitable and does not conform with world rates. 
Egypt had previously asked Jordan to discuss increasing the price for gas supplies, which Jordan obtains through two separate deals. 
The first, signed in 2003, stipulates that Jordan receives 77 billion square feet of gas for US$1.27 per each million BTU. The second grants Jordan 32 billion square feet for US$3.06 per million BTU. 
Supplies have been halted since 29 January after an attack on the main pipeline passing through North Sinai. Supplies have not resumed even though workers repaired the pipeline.
Egypt's gas supply to Israel, which passes through the same pipeline, has also been halted after the government asked Israel to renegotiate its prices. 
Ghorab said he asked Jordan to understand Egypt's needs during the government's transitional phase, stressing Egypt's right to benefit from its natural resources in a way that does not encroach on the rights of contracted importers. 
The minister pointed out that his country is seeking balance and justice in its gas export deals. 
Jordanian officials recently stated that amending the rates quoted in the original contract was impossible but could be increased with additional gas supplies. 
Ghorab said these statements were made in the context of negotiations. He said negotiations with Amman are difficult because they are between the states and not the companies involved. 
Translated from the Arabic Edition