Page 5 - MEOG Week 02

MEOG Commentary MEOG
with the Zionist Entity” protest group, a coali- tion of professional unions, opposition parties and lawyers that has been pursuing the issue since 2016.
In courts in the cities of Irbid, Madaba, Amman, Zarqa and Karak, around 220 lawsuits were filed by lawyers on behalf of Jordanians free of charge, in an attempt to put an end to Jordan’s purchase of Israeli gas. Lawsuits began to be filed on Sunday and are set to continue up to Thurs- day. The protesters’ aims include halting legal and business work relating to the pipes, cancel- ling land acquisitions, scrapping the deal and holding those “behind the deal” accountable.
“Amongthelegalloopholesisthefactthatthe agreement was never presented to Parliament for approval. This is a violation of paragraph 2 of article 33 of the Jordanian constitution, which states that all international agreements and treaties which have a financial burden on the treasury and affect the rights of Jordanians are considered invalid if not approved,” Armouti said.
“The agreement can also be cancelled because the gas pipeline has not been finalised due to the rejection of the professional unions and land- owners where the pipeline is supposed to pass through. Various legal cases are pending on this level.”
This raft of legal challenges filed across Jor- dan has put the kingdom’s latest controversial gas deal with Israel in jeopardy, and placed greater strain and uncertainty on the government of Prime Minister Omar al-Razzaz.
According to the MP, the conditions of the deal state that if NEPCO can prove it has finan- cial problems, it can be liquidated in accordance with Jordanian company law, thereby revoking the agreement.
Following a stormy session in Parliament in March, the government agreed to refer the gas deal to the constitutional court to decide its legality. However, the government is yet to do so.
details
The agreement, which was signed in 2016, stip- ulates that Jordan will purchase gas that comes from Leviathan, Israel’s largest offshore gas field.
Previously, it had been reported that the most recent deal was signed by Jordan’s NEPCO, with US firm Noble Energy acting as its guarantor. However, the leaked agreement document, which has been seen by Middle East Eye, reveals that the Jordanian and US governments are also acting as guarantors. This has led to fears that not only is Amman committed to paying the deal’s costs, but also that if it is unable to do this then Washington will suspend its aid payments to Jor- dan in the event of any default.
The document also shows that were Jordan to discover its own reserves of gas, Amman would still be unable to lower the percentage it acquires bymorethan20%.
One detail that the MP said the public had been misled on was that the deal was not only signed with Nobel Energy and delek, but also with NbL, a consortium of four companies that the two are members of. Armouti questioned who was behind the other two members of NbL.
In terms of payment, Jordan must remit $1.5bn in the first five years, with another $800m due after 10. If Jordan wishes to cancel the deal after 10 years, it must pay a $400m penalty.
The Jordanian government has not com- mented following Armouti’s latest revelations; the MP has threatened to table a no-confidence motion against the government unless it tears up the deal.
Jordan’s options
Jordan, which is struggling under a moribund economy, turned to Israeli gas in an attempt to wean itself off dependence on supply from Egypt. In 2011, repeated attacks on the pipeline between Egypt and Jordan disrupted the coun- try’s supply.
In the face of faltering gas supplies, Jordan was forced to turn to expensive fuel oil for its power needs, resulting in a 30% hike in its budget deficit.
Overall the pipeline attacks cost Jordan $5bn, with $3bn of that being charged to consumers as an extra expense on the public’s energy bills.
The Leviathan partners have already signed major export deals with Egypt, which will begin importing Israeli gas later this month.™
Week 02 15•January•2020 w w w. N E W S B A S E . c o m P5