Lower house rejects Gas Deal with Israel, calls for terminate it

The Lower House of Parliament decided to reject the "supply natural gas from Israel" agreement and called on the government to terminate it.

The house made the decision at end of a general discussion session on energy Tuesday evening chaired by Lower House Speaker Atef Tarawneh, and attended by the cabinet.

Deputy Prime Minister and State Minister, Rajai Al-Muasher called for a "deadline" so that the government could request the Constitutional Court opinion on the Parliament's authority to discuss the gas agreement with Israel, specifically the interpretation of Article 33 of the Constitution.

MPs, who spoke at the session, fully and principally rejected the 15-year agreement with Noble Energy to purchase $10 billion worth of natural gas supplies via the Israeli Leviathan Gas Field to northern Jordan as of 2020.

The National Electric Power Company (NEPCO) exclusively imports natural gas and transfer it to electricity generation companies to produce 85 percent of Jordan's gas needs. These companies consume 330 million cubic feet per day.

NEPCO justifies the agreement as being in line with objectives of the energy sector's comprehensive strategy, which is to diversify sources of energy supply, expanding renewable and nuclear energy, in addition to oil shale, and not to rely on a single source to avoid repeating the negative effects of Egyptian gas cuts, in addition to enhancing opportunities for regional cooperation.

In September 2016, NEPCO signed a 15-year agreement with Noble Energy, a Houston-based company that holds the largest share in the Israeli Leviathan Gas Field, to purchase $10 billion worth of natural gas supplies.

The government then said it would import 250-300 million cubic feet of natural gas per day from Noble Energy, which is expected to save around JD700 million annually of the country’s energy bill.

Under the deal, Jordan will receive 3 billion cubic metres of gas per year.