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Jordan to Increase Gas Imports from Egypt

A plant's gas tanks are seen at the desert road of Suez city north of Cairo, Egypt. (Reuters file photo)
A plant's gas tanks are seen at the desert road of Suez city north of Cairo, Egypt. (Reuters file photo)
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Jordan to Increase Gas Imports from Egypt

A plant's gas tanks are seen at the desert road of Suez city north of Cairo, Egypt. (Reuters file photo)
A plant's gas tanks are seen at the desert road of Suez city north of Cairo, Egypt. (Reuters file photo)

Jordan announced on Tuesday that it was seeking to increase its natural gas imports from Egypt to cover a third of its demands.

Hala Zawati, Jordanian minister of energy and mineral resources, estimated Jordan’s gas demands in 2019 at around 350 million cubic feet per day.

“Jordan started receiving natural gas from Egypt since September. It’s on (an) experimental basis for the pipeline but we hope in the beginning of 2019 to increase these amounts,” she told reporters.

Jordan began importing natural gas from Egypt two months ago but increasing imports significantly would depend on construction of a pipeline between Jordan and Iraq which has yet to be built.

“We have not yet agreed with Egypt. Now there are negotiations on how much will be pumped but we hope at least one third of the country’s requirements will be taken from Egypt,” she added, without giving a timeframe for reaching that goal.

Asked about the pipeline which will eventually connect the southern city of Basra in Iraq with Jordan’s Red Sea port of Aqaba, Zawati said: “We’ve had discussions with Iraq that started years ago. It was approved by the Jordanian cabinet, and now we are waiting for the Iraqi side to start working on the pipeline.”

“It’s still there as an idea but has not (yet) materialized... the political situation did not allow for that pipeline to materialize.”

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Federal Reserve Cuts Key Rate by Sizable Half-point

News screens display the Federal Reserve rate announcement on the trading floor at The New York Stock Exchange (NYSE) in New York City, US, September 18, 2024. REUTERS/Andrew Kelly
News screens display the Federal Reserve rate announcement on the trading floor at The New York Stock Exchange (NYSE) in New York City, US, September 18, 2024. REUTERS/Andrew Kelly
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Federal Reserve Cuts Key Rate by Sizable Half-point

News screens display the Federal Reserve rate announcement on the trading floor at The New York Stock Exchange (NYSE) in New York City, US, September 18, 2024. REUTERS/Andrew Kelly
News screens display the Federal Reserve rate announcement on the trading floor at The New York Stock Exchange (NYSE) in New York City, US, September 18, 2024. REUTERS/Andrew Kelly

The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates helped tame inflation but that also made borrowing painfully expensive for American consumers.
The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing, The Associated Press reported. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote.
The central bank’s action lowered its key rate to roughly 4.8%, down from a two-decade high of 5.3%, where it had stood for 14 months as it struggled to curb the worst inflation streak in four decades. Inflation has tumbled from a peak of 9.1% in mid-2022 to a three-year low of 2.5% in August, not far above the Fed’s 2% target.
The Fed’s policymakers also signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. And they envision four more rate cuts in 2025 and two in 2026.
In a statement, the Fed came closer than it has before to declaring victory over inflation: It said it “has gained greater confidence that inflation is moving sustainably toward 2%.”
Though the central bank now believes inflation is largely defeated, many Americans remain upset with still-high prices for groceries, gas, rent and other necessities. Former President Donald Trump blames the Biden-Harris administration for sparking an inflationary surge. Vice President Kamala Harris, in turn, has charged that Trump’s promise to slap tariffs on all imports would raise prices for consumers even further.
Rate cuts by the Fed should, over time, lower borrowing costs for mortgages, auto loans and credit cards, boosting Americans’ finances and supporting more spending and growth. Homeowners will be able to refinance mortgages at lower rates, saving on monthly payments, and even shift credit card debt to lower-cost personal loans or home equity lines. Businesses may also borrow and invest more.
Average mortgage rates have already dropped to an 18-month low of 6.2%, according to Freddie Mac, spurring a jump in demand for refinancings.
The Fed’s next policy meeting is Nov. 6-7 — immediately after the presidential election.