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.”



Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.