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Jordan picks Shell to supply LNG

MILAN, October 15, 2015

Jordan has awarded half of its four-year, up to 78-cargo liquefied natural gas (LNG) buy tender to Royal Dutch Shell which will cover deliveries in 2016 and 2017, overlooking commodity traders for the business, trade sources said.
 
The award builds on Shell's already dominant position in supplying LNG to Jordan, a rare growth market for the fuel.
 
This year the country signed a five-year deal with the Anglo-Dutch energy giant for 150 million cubic feet/day of LNG delivered to its floating import terminal near the Red Sea port of Aqaba, covering a quarter of Jordan's power needs.
 
The tender result contrasts with Egypt's decision this week to buy 55 LNG cargoes for delivery between November this year to December, 2016 largely from commodity trading houses, although Shell was also a winner in that tender.
 
Both countries are taking advantage of low LNG prices to cover domestic energy shortfalls with big supply purchases, a highlight of the LNG trading calendar otherwise marked by plunging fuel prices and weak demand in main market Asia.
 
Two traders said Shell had clinched the first two years of supply under the Jordanian tender, but it was not clear whether Jordan has awarded deliveries for 2018 and 2019 or if this will be re-tendered at a later date.
 
A trader involved in the tender said all participating trading houses had received regret letters from Jordan's National Electric Power Company (Nepco) following the tender's award this weekend. - Reuters



Tags: Shell | Jordan | LNG | tender | Supply |

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