Jordan’s Risha Gas Discovery: A Game Changer for Israel, Egypt, and LNG Markets?

With 5 charts

On November 7th, a senior official at Jordan’ ministry of energy revealed in an interview with Al-Mamlaka TV that recent studies indicate the presence of large commercial gas reserves at Risha gas field in Jordan. Mr.Bahjat Al-Adwan, director of Natural Resources at the Jordan’s Ministry of Energy, stated that the estimated commercial quantities are 9.4 trillion cubic feet or 266 billion cubic meters (bcm). These reserves are projected to meet local demand and potentially lead Amman to achieve self-sufficiency by 2030, contingent upon the pace of field development.

The extraction of these huge reserves could be a game changer for Jordan, which currently relies on imports for over 95% of its gas needs, primarily from Israel. This discovery has also the potential to set the stage for industrial growth in the kingdom in the coming years.  The impact on Israel, Egypt, and LNG markets and the geopolitical ramifications cannot be ignored. It could revive the ideas of shipping Eastern Mediterranean gas to Europe via pipelines or in the form of LNG as Israeli gas might end up stranded, especially if Jordan starts exporting gas to Egypt and Egypt is able to rejuvenate its natural gas production. 

In this article, we will provide an overview of:

·       Gas supply in Jordan and the significance of Risha gas field.

·       Gas consumption and key gas consuming sectors.

·       Outlook of the gas sector in Jordan upon the development of Risha gas field.

·       Regional and geopolitical ramifications of this gas discovery

Gas Supply in Jordan