Jordan urged to cancel Israel gas deal after supply halted amid Iran war

Middle East Eye

4 hours ago

The suspension of Israeli gas supplies to Jordan, triggered by recent attacks on Iran, has reignited calls in Amman to cancel the gas agreement with Israel.
The production halt - resulting from disruptions at the Leviathan gas field - is being cited by the Jordanian National Campaign to Overturn the Gas Agreement with the Zionist Entity, known by its slogan "The Enemy's Gas is Occupation", as grounds to terminate the deal.
The campaign, a coalition of public figures, political parties and professional associations opposed to normalisation with Israel, views the current situation as a legal and political opportunity to annul the agreement under the force majeure clause.
This clause permits cancellation without financial penalties if unforeseen events prevent the fulfilment of contractual obligations.
Under the terms of the Israel-Jordan gas deal, force majeure refers to circumstances beyond the control of either party - such as natural disasters, armed conflict or political unrest - that render the implementation of the agreement unfeasible, they say.
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"What is happening now clearly constitutes a case of the other party failing to meet its contractual obligations," the campaign told Middle East Eye.
"This opens the door to cancelling the agreement without legal or financial consequences. In fact, doing so is a duty dictated by national sovereignty and the safety of our citizens."
The group called on the Jordanian government to act swiftly and begin developing sovereign domestic energy resources instead of relying on Israeli gas.
'Triple crime'
The gas agreement, signed in 2016 and implemented in 2019, stipulates the import of natural gas extracted from the Leviathan field, located in the Mediterranean Sea off the coast of Haifa.
Valued at approximately $10bn over 15 years, the deal entails Jordan receiving around 300 million cubic metres of gas per year, in return for long-term payments made to Israel.
Critics argue that importing gas from Israel is unacceptable for several reasons, foremost among them opposition to normalisation with the Israeli state.
According to the campaign, making Jordan dependent on Israeli gas constitutes a "triple crime".
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First, they argue, the deal exposes national sovereignty to political blackmail.
Second, it channels $10bn of public money into the Israeli economy.
Third, it deprives Jordan of the opportunity to invest those funds in sustainable, home-grown energy alternatives.
Saleh Al-Armouti, Jordanian MP and head of the Islamic Action Front parliamentary bloc, echoed these concerns.
He told MEE that the interruption of gas supplies provides Jordan with solid legal grounds to cancel the agreement or pursue compensation worth billions of dollars.
"It is the legal right of the Jordanian state to file a lawsuit demanding compensation for the damages caused by the supply cut-off, based on the terms of the agreement," Al-Armouti said.
He added that Jordan has viable alternatives to Israeli gas.
"We already have infrastructure like the floating terminal in Aqaba, which costs millions annually without being fully utilised, as well as domestic sources such as the Risha gas field and the Attarat oil shale project," he added.
Emergency plan
In response to the cut-off in supply, Jordanian authorities have activated an emergency plan, which includes the temporary suspension of gas supplies to certain factories connected to the national grid.
Jordan's national electricity company sought to reassure the public, stating that the country's fuel reserves for power generation are sufficient to last at least 20 days, even with the halt in gas supply from Leviathan.
Government spokesperson and Minister of Government Communication, Mohammad Al-Momani, said authorities responded by switching to heavy fuel oil as an alternative, "as part of the emergency strategy developed by the Ministry of Energy".
'There are no strategic, long-term solutions in place'
- Musa Al-Saket, economic expert
Minister of Energy and Mineral Resources, Saleh Al-Kharabsheh, echoed these remarks, saying that despite the regional escalation, "the electrical system in Jordan remains stable and secure".
Speaking on Thursday, Al-Kharabsheh announced that the government had activated alternative supply routes, including the import of 100 million cubic feet of gas per day from Egypt, to compensate for the shortfall.
He added that Jordan is incurring additional costs to bolster its stockpile of petroleum derivatives, but emphasised that power stations are fully capable of switching to alternative fuels without compromising grid efficiency.
On Friday, an Israeli energy ministry spokesperson said limited gas exports to Egypt and Jordan had resumed, using "surplus" supplies not required for domestic consumption.
However, large-scale shipments remain unlikely in the near future.
Lack of long-term solution
Economic expert and member of the Amman Chamber of Industry, the engineer Musa Al-Saket, warned of the consequences of a continued suspension in natural gas imports, cautioning that a prolonged disruption could severely affect Jordan's industrial sector - particularly by increasing production costs.
"The government and the National Electric Power Company (NEPCO) have outlined short-term alternatives lasting 20 to 30 days, but there are no strategic, long-term solutions in place," Al-Saket told MEE.
"Most industries lack independent emergency plans, as they depend heavily on public-private partnerships within the energy sector."
Al-Saket called for broader approval for the installation of renewable energy systems and urged increased investment in domestic energy sources, including the Risha gas field, oil shale projects and solar energy.
According to data from the Ministry of Energy, Jordan in 2023 relied on imported natural gas for approximately 61.1 percent of its electricity generation, compared to 26.28 percent from renewable sources (solar and wind) and 12.62 percent from heavy fuel oil.
The country's power stations consume around 1.5 billion cubic feet of gas per day, while installed renewable capacity stands at roughly 2,681 megawatts - meaning any sustained disruption in gas supply could pose a threat to the stability of the power grid.
Jordan is contending with mounting economic challenges amid ongoing regional instability, driven by Israel's wars on Gaza, Lebanon and now Iran.
The repercussions extend far beyond energy. Tourism - a cornerstone of the Jordanian economy - has been severely impacted, with rising tensions deterring international visitors.
Jordan's geographical location - lying along the flight paths of Iranian missiles and Israeli fighter jets - has heightened its exposure to regional security threats and prompted costly defensive measures to safeguard its airspace and sovereignty.