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NEPCO Signs 10-Year Lease Agreement for LNG Floating Storage Unit in Aqaba

The National Electric Power Company (NEPCO) signed a 10-year lease agreement with BW LNG for a Floating Storage Regasification Unit (FSRU) to be stationed in Aqaba. The agreement, signed yesterday, includes a clause for the transfer of ownership to NEPCO at the end of the lease, in a move aimed at strengthening Jordan’s energy security through liquefied natural gas (LNG) as an alternative energy source.

Following the signing, NEPCO’s General Manager, Sufian Al-Batayneh, stated that the FSRU will be permanently docked at the Sheikh Sabah LNG Terminal upon completion of the lease term. He highlighted the vessel’s key role in bolstering Jordan’s national energy security, emphasizing the importance of diversifying gas supplies.

Al-Batayneh also noted that necessary modifications will be made to the vessel well ahead of the contract’s start to meet the requirements of the Sheikh Sabah Terminal Development Project, which will also include the construction of onshore regasification infrastructure.

“This initiative aligns with global efforts to transition toward a low-carbon society and promote sustainable, affordable, and reliable energy,” said Al-Batayneh.

Originally an LNG carrier, the vessel will be converted into a floating storage unit prior to the lease’s commencement, with the start of operations expected by the third or fourth quarter of 2026. The FSRU is part of BW LNG’s fleet, which comprises 34 vessels, including four floating storage units and four ships currently under construction.

This strategic partnership is part of NEPCO’s broader vision to secure Jordan’s energy needs while moving toward greener and more sustainable energy solutions

Source: Addustour Newspaper

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