Ammon News - AMMAN — Jordan and Egypt signed an amended gas-pricing agreement in Cairo on Wednesday, Minister of Energy and Mineral Resources Qutaiba Abu Qura said on Wednesday.

After attending the meeting of Arab electricity ministers in Cairo, Abu Qura said the agreement, which entails new prices, was signed after it was approved by the two countries’ councils of ministers.

The agreement was the outcome of negotiations between Jordanian and Egyptian officials in this regard, he told the Jordan News Agency, Petra.

Jordan relies on Egyptian gas to generate about 80 per cent of its electricity needs.

Abu Qura expressed Jordan’s thanks to Egypt, stressing the strong ties between the two countries.

In August this year, the Cabinet approved the agreement renewal.

Under an agreement signed between the two countries in 2001, Jordan is supposed to receive around 250 million cubic feet of gas annually.

Egyptian media outlets quoted Egypt’s Minister of Petrol Abdullah Ghurab as saying that the new prices will be imposed in retrospect from the beginning of this month, adding they will apply to the basic quantities agreed on under the contract, besides additional ones.

The new gas export prices are in line with the prices of the European markets, he said, noting that the prices will be reviewed in mid-2013.

The amended gas agreement raises prices from less than $2 to over $6 per 1,000 cubic feet.

Under the agreement, prices will be reviewed every two years.

The agreement also stipulates that Egypt is to provide additional gas quantities to Jordan as compensation should a disruption in supply occur.

The signing of the agreement reflects the good relations between the two countries and attests to Jordan’s understanding of Egypt’s “just demands”, he said.

Gas supplies to Jordan from Egypt have witnessed several disruptions over the past few months as a result of several consecutive attacks on the gas pipeline.

The Egyptian pipeline carrying gas to Jordan and Israel has been blasted 10 times this year. (The Jordan Times)