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Trowers & Hamlins advises Jordanian government next stage of implementing the Kingdom’s LNG import s

Trowers & Hamlins advises Jordanian government on next stage of implementing the Kingdom's LNG import strategy

Trowers & Hamlins has advised the Ministry of Energy and Mineral Resources of Jordan, together with Navigant, Mapstone and Tractebel Engineering, on a time charter party agreement with Golar LNG Limited for the supply of a Floating Storage and Regasification Unit (FSRU).  The agreement was signed in late July 2013 and represents the latest step in implementing Jordan's liquefied natural gas (LNG) import strategy.

The FSRU will receive cargoes of LNG, store them and then re-gasify it for onward transmission through Jordan.  The FSRU Golar Eskimo, which is to be supplied under the time charter party agreement, will be moored at a purpose-built structure due to be constructed by the Aqaba Development Corporation off the Red Sea port of Aqaba. 

Capable of storing 160,000 cubic metres of LNG and delivering up to 500 million standard cubic feet per day (MMSCFD) with a peaking capacity of 750 MMSCFD, the FSRU will connect to the Jordan Gas Transmission Pipeline that delivers natural gas to power plants throughout the Kingdom.  The signing of this agreement will enable Jordan to meet its growing demand for energy.  

Martin Amison, partner and Head of International at Trowers & Hamlins, commented:  "FSRU projects are hugely complicated, but they are an excellent option for nations looking for quick-fix solutions to meet gas demand.  This FSRU will allow the Jordanian Ministry of Energy and Mineral Resources to address the shortfalls and disruption in the supply of pipeline gas from Egypt and ensure the Kingdom can import enough LNG to meet increased demand.  We are very pleased to have been involved in this deal and look forward to continuing assisting the Jordanian government with its LNG import strategy."  

Tom Wigley, partner at Trowers & Hamlins, added:  "Governments across the Middle East and North Africa are searching for innovative and cost-effective ways to import LNG.  FSRUs are seen as relatively low-cost and quick and easy to set up.  However, delivering and operating FSRUs is complex and highly specialised work, something all governments need to consider when tendering for them."

Trowers & Hamlins has advised the Jordanian government on all legal aspects surrounding the implementation of its LNG import strategy.  The firm continues to advise on the Government's LNG supply tender, the final step in the strategy.  A preferred bidder for the LNG supply tender is expected to be appointed in the final quarter of 2013.