Daily Energy Report
Jordan' gas discovery, US gasoline inventories, US LNG expansion, Kuwait invests in production, Bunker premiums low, China’s Iraq presence, Rise of dual-fuel ships, and more.
Chart of the Day: Risha Gas Discovery in Jordan Requires $2 billion of Investment and a Pipeline, with Impact on Israel and Egypt
Summary
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 the Risha gas field in Jordan. Mr. Bahjat Al-Adwan, Director of Natural Resources at 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 (See Figure (1) above) and potentially lead Amman to achieve self-sufficiency by 2030, contingent upon the pace of field development. Below are some details:
Based on SLB high case estimates, gas in place is estimated at 14.6 trillion cubic feet and 6.65 trillion cubic feet can be extracted. In the base case, the discovery has 11.99 trillion cubic feet of gas where 4.67 trillion cubic feet can be extracted.
Development of the field will start immediately. It will take four years for the first gas to come online.
The plan is to drill 70 wells by 2029. Production is expected to increase from the current 45 million cubic feet to 150 million cubic feet. Eight wells will be drilled in 2025.
The development plan includes building a pipeline from the Risha field to the Arab Gas Pipeline as shown in the map below.
Total cost is estimated at $2.8 billion.
