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Globes: Jordan signs $10b Leviathan gas deal

Published on Sep 26 2016 // Business and Financial News, Market

September 26, 15:03 – Leviathan partners have signed a huge agreement to provide Jordan’s National Electric Power Company with 45 BCM of natural gas.

Trading was suspended in the shares of the Leviathan partners today, after they announced that a huge deal for the sale of natural gas to Jordan worth an estimated $10 billion had been signed.

Under the terms of the agreement, the marketing firm owned by the Leviathan partners, NBL Jordan Marketing, will provide Jordan’s National Electric Power Company (NEPCO) with 45 billion cubic meters (BCM) of natural gas over 15 years. According to the export agreement, supply is to commence once gas from Leviathan is flowing and the pipelines to convey the natural gas between Israel and Jordan are laid. This deal is for one tenth of the gas in the Leviathan field.

The agreement is linked to the price of a barrel of Brent crude and includes a lower threshold and a conveyance fee. The Leviathan partners estimate that the cumulative revenue from natural gas sale to NEPCO may reach $10 billion, assuming that the Jordanian company consumes the overall volume stipulated in the contract; this sum is based on estimates made by the partners regarding the price of natural gas during the term of the agreement. Actual revenue will be affected by various factors, including the volume of gas NEPCO actually buys and Brent prices during the period of the contract…..Read More>>

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