Jordan Considers Alternative Gas Supplies Amid Concerns Over Israeli Disruption

Jordan is considering diversifying its natural gas supplies amid fears that there could be disruptions in the flow of gas from Israel.

According to a report by a state-owned TV channel, Prime Minister Bisher Khasawneh had said Jordan was in discussions with two potential suppliers from the Persian Gulf, Bloomberg reported. Both had expressed readiness to supply gas to the Middle Eastern nation.

The main concern of the Jordanian government appears to be the possibility of a supply disruption from the Leviathan field, operated by Noble Energy, according to Prime Minister Khasawneh, who noted that it was not considering canceling this project.

“We have not seen any signs that this will happen,” Khasawneh said, regarding a possible supply disruption. “But Jordan is planning for various scenarios and possibilities amid ongoing aggression and war on the Gaza Strip.”

The Leviathan field, along with the Tamar field are the two sources of natural gas in Israel, with part of the output exported to Jordan and Egypt, where the gas gets liquefied and sent on to international markets.

When Hamas struck Israel in early October, however, the Israeli government ordered the Tamar field shut down for fear of it becoming a target for the Palestinian group. Production at the field resumed earlier this month. Tamar produced somw 10.25 billion cubic meters of gas last year.

The Leviathan field has an annual production rate of some 12 billion cubic meters but the partners operating it earlier this year agreed to sink another $100 million into field developments, including a new floating LNG terminal in a move that the companies say will boost the field’s production to 21 bcm per year.

The partners have dedicated $45 million to expanding production and $51.5 million to preparing the floating LNG terminal, which is expected to have an annual capacity of 6.5 bcm.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

• Trillion Dollar Bailout: What Xi Really Wants From Biden
• OPEC+ Nearing Compromise in Spat with African Oil Producers Over Quotas
• Europe Has To Live With Unpredictable Natural Gas Prices