Tuesday, September 27, 2022

Jordan and Saudi Arabia move closer to signing energy-sharing deal

ByNews Desk- The Cradle 

The project, set to come online in 2025, is expected to make Jordan 'a regional hub for energy exchange'

Kuwait-based online newspaper Al-Rai reported on 27 September that a meeting took place between the Jordanian Director General of the National Electric Power Company, Amjad Rawashdeh, and a Saudi delegation headed by the CEO of the Saudi Energy Procurement Company, Mazen bin Ali al-Bahkali.

The meeting discussed the progress of the Jordanian-Saudi electrical interconnection project, which is expected to be officially signed before the end of this year.

According to ‘Energy & Utilities’ website, the interconnection will have a capacity of 500 MWh and the technical capability to accommodate an increase to 1 GWh for future upgrades.

“The two sides agreed that in the second half of 2025, the project would be commercially operated,” said Rawashdeh.

In 2020, Saudi Arabia and Jordan signed a memorandum of understanding (MoU) to construct a 164 km electricity grid between the two countries.

“The agreement would make Jordan a regional hub for energy exchange, especially since the Jordanian-Saudi power grid connection would be the starting point of the comprehensive Arab electricity interconnectivity,” said Jordanian Energy Minister Hala Zawati in 2020.

According to CEIC Data Global Database, electricity production in Jordan reached 18,810,000 MWh in December 2020, averaging a yearly consumption of 16,000,000 MWh.

In 2016, Jordan exported 45,000 MWh of electricity.

Lebanon and Jordan signed a US-brokered energy deal on 26 January to import gas to Lebanon from Egypt and Jordan via Syria.

The agreement would provide Lebanon with two extra hours of electricity to ease the crippling blackouts affecting the country since 2020.

Today, most Lebanese citizens depend on private generators or solar panels, as the state-owned electricity grid is crippled with a maximum average feed of one hour daily in most cities.

According to a report by Reuters, Lebanon would receive 150 megawatts (MW) from midnight to 6 am and another 250 MW throughout the day.

“It is a humble deal but of great importance for the Lebanese people who are today in need of every hour of additional electricity,” Lebanese Energy Walid Fayyad said.

The final deal was signed by officials from Lebanon, Egypt, and Syria on 21 June.

However, over a year has passed since the US promised to assist Lebanon in acquiring the much-needed funds from the World Bank in order to move forward with this deal, which has been on hold for months now.

Additionally, Washington has yet to issue a sanctions waiver to remove liability to US sanctions under the Caesar Act for the countries involved in the deal.

Yeghia Tashjian writes in The Cradle that the US is putting immense pressure on the Lebanese energy sector by leveraging the gas deal with Egypt and Jordan to influence the US-brokered maritime border talks with Israel.

As a result of such delays, Lebanon has decided to accept a fuel oil donation from Iran.

The free fuel would provide Lebanon with up to 8 hours of electricity as Iranian authorities agreed to assist Lebanon in the wake of the request from Hezbollah’s Secretary General Hassan Nasrallah.

Al-Jadeed TV quoted Fayyad as saying that the first fuel shipments might arrive in weeks if not days, embarrassing the US administration for failing to be up to its promise to assist in time.

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