The Challenge

Levant LNG, a prominent LNG operator, required assistance to assess the integrated net benefits of importing LNG via a Floating Storage Regasification Unit (FRSU) situated in Aqaba, Jordan. The Client was concerned about increasing natural gas supply interruptions from Egypt and supplies from the Arab Gas pipeline falling below contracted levels. IPA assessed cost savings under various fuel to power scenarios to help the Client formalise their strategies.

Our Solution

To carry out this task, IPA developed an integrated economic model to determine the least cost generation option for the Jordanian power sector, based on forecast electricity prices and net back fuel pricing. This included an assessment of the costs of Egyptian gas supply interruptions taking into account available gas pipeline resources and factoring the indicative supply agreement terms.

IPA also appraised a number of fuel supply scenarios and utilised its market model to measure the economic attractiveness from the utilisation of LNG imports within the Jordanian energy system. The results of the integrated analysis assisted the client with assessing the economic benefits of LNG imports and provided assurance to project investors regarding the proposed project’s viability.