No price adjustments for gas exports to Jordan before 2016, says minister

The natural gas exportation deal signed between Egypt and Jordan in 2004 prevents the modification of prices before the year 2016, said Jordan's Minister of Energy and Mineral Resources Khaled Tukan in an interview with Al-Masry Al-Youm on Tuesday.

In the interview, Tukan said the former regime only negotiated price changes for additional quantities of natural gas exported and not for the basic amounts stipulated in the contract. He pointed out that Egyptian gas covers 80 percent of Jordan's energy needs.

"We understand the public’s pressure [on the Egyptian government], and we continue to monitor the situation in Egypt,” said Tukan. “It’s in our interest to reach a satisfactory agreement and to announce it to the public as well."

Tukan added that the contract includes penalty clauses in the case of gas supplies being stopped, but he said he did not believe the penalty clause would be placed on the negotiating table at the moment.

"The intermediary exporting company sent official letters to us, telling us that gas pumping had been interrupted due to the exceptional, urgent circumstances that Egypt is passing through,” he explained. “According to the agreement, in the case of urgent circumstances, the implementation of penalty clauses is not considered."

"I believe that supplying Jordan with gas is important for our Egyptian brothers and that it supports their economy, and I believe that the Egyptian government is serious in supplying us with gas."

Translated from the Arabic Edition

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