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Egypt - Jordan Concept

Egypt - Jordan Concept. Amin, on behalf of King Abdullah of Jordan, has negotiated/agreed with Egyptian Prime Minister /Energy Minister the following concepts: Jordan will import gas from Egypt directly via Aqaba (i.e., Jordan will not import Egyptian gas via Lebanon)

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Egypt - Jordan Concept

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  1. Egypt - Jordan Concept • Amin, on behalf of King Abdullah of Jordan, has negotiated/agreed with Egyptian Prime Minister /Energy Minister the following concepts: • Jordan will import gas from Egypt directly via Aqaba (i.e., Jordan will not import Egyptian gas via Lebanon) • A fundamental condition to Jordanian imports is the unfettered right to re-export Jordanian gas to Syria/Turkey/Lebanon • Amin, in conjunction with a prominent Egyptian businessman, will organize a private company to transport and market the gas. • Amin has requested Enron assistance in structuring/marketing/financing, and has offered Enron a 10% non-equity carried interest to be earned at financial close (NPV15 to Enron = $25 million) • Basic terms of proposed Enron/Amin deal along with economic details are attached

  2. Summary Project Economics

  3. Core Project Assumptions Assumptions • Annual Throughput (estimated Jordanian demand) 400mmcfd • Project Capex $553mm • Annual O&M $17mm • Project Term 20 years • Gas Purchase Price at Al Arish ($/MMBTU) $1.20 (equivalent to $1.50 at Taba) • Gas Sales Price ($/MMBTU) $2.00 • Transco Tariff* ($/MMBTU) $0.63 • Marco Margin ($/MMBTU) $0.17 • Debt/Equity (70/30 ) $387mm/$166mm Loan Term 10 years Upfront fee 8% Spread over swapped rate 1% *The tariff paid to Transco is calculated to give it a 15% IRR

  4. The Network Effect Economics In $MM Project NVP 10 cents cheaper 200 MMCF/D supplied by Saudi. 200 MMCF/D additional Gas to Syria; Margin for Marco $0.30/MMBT Base Case, 400 MMCF/D from Egypt. Project NPV at 15% is $115mm All Scenarios Combined Selling 100MMCF/D more in Aqaba.

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