Jordan Picks Shell for Two-Year LNG Supply to Meed Demand

Updated on
  • Shell to provide 18-20 shipments a year after winning tender
  • Nation will use fuel to cover 40% of power generation

Jordan selected Royal Dutch Shell Plc to supply liquefied natural gas for the next two years after a tender. 

Shell will send 18-20 shipments a year, covering 40 percent of Jordan’s needs for power, in 2016 and 2017, Abde Al-Fattah Al-Daradkeh, director general of National Electric Power Co. of Jordan, said Wednesday by phone. The Amman-based company initially sought LNG supplies for the four years from January 1, according to tender documents issued in July.

Jordan became an LNG importer this year after opening a floating terminal at the Red Sea port of Aqaba, joining other Middle Eastern nations that turned to the super-chilled fuel to meet their rising power demand. Jordan this month also started exporting gas to Egypt via a pipeline after reaching an agreement to receive extra LNG cargoes using excess capacity at Aqaba.

Shell declined to comment, spokesman Jonathan French said by e-mail. Shell already provided cargoes to Jordan, including the first commercial LNG in July, after signing a five-year agreement on supplies, according to Jordan’s Energy Ministry.

In addition to the volumes awarded in the latest tender, Shell provides Jordan with 18 to 20 shipments of LNG a year as part of a deal signed with the government last year, Al-Daradkeh said Wednesday.

In a separate tender, Egypt this week picked seven companies to provide 55 LNG cargoes through December 2016, the country’s oil ministry said in an e-mailed statement Oct. 12, without identifying the companies. It had originally sought 45 cargoes.