Israel and Jordan sign natural gas deal

Israel and Jordan have signed a deal under which Israel will supply from 2016 $500 million worth of gas to Jordan from the Tamar natural gas field in the Mediterranean. 

The supply will continue over a 15-year period and, according to Israel’s Channel 2 television the deal may be expanded to a $30-billion mammoth partnership, under which Israel would become the major supplier of Jordan’s gas needs.  The deal was brokered by US Deputy Assistant Secretary for Energy Diplomacy at the State Department Amos Hochstein, who has held more than a dozen meetings with Jordanian and Israeli businessmen and political leaders over the past 18 months.

Under the deal, Tamar will supply 66bn cubic feet to Jordan’s Arab Potash and its affiliate, Jordan Bromine, at their facilities near the Dead Sea, according to a statement issued by Texas-based Noble Energy, which owns 36 percent of the Tamar.  The Jordanians turned to Israel because their supply of natural gas from Egypt had been halted by repeated terrorist attacks on the gas pipeline from Egypt.  Israel decided last year to export 40% of the country’s offshore gas finds.

In March 2013, Israel began pumping natural gas from the Tamar deposit — discovered in 2009 and located some 90 kilometers (56 miles) west of Haifa — which holds an estimated 8.5 trillion cubic feet of natural gas.  In addition to Tamar, in 2010 an even larger deposit, Leviathan — which boasts an estimated 16-18trl cubic feet of gas — was discovered 130 kilometres (81 miles) west of Haifa. It is expected to become operational in 2016.  The decision on gas exports grew out of conclusions published by the Tzemach Committee headed by former Water and Energy Ministry director general Shaul Tzemach.

The committee, formed in late 2011, had called on Israel to keep the first 450bn cubic metres for domestic use, and allow the export of up to half of any additional amount extracted from the proven reserves.  Israel is also exploring possible gas exports to Turkey, the TV report said Wednesday, despite the current strained relations between Jerusalem and Ankara.

“This deal will pave the way for additional export projects which could enhance regional cooperation as well as provide additional supply to the domestic market and enhanced security of supply through development of additional reservoirs and infrastructure,” said Noble’s Eastern Mediterranean Vice President Lawson Freeman.  The consortium operating the Tamar gas field previously have signed a 20-year contract to sell $1.2bn worth of natural gas to the Palestinian Authority.

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