Jordan Petroleum Refinery Co Ltd., the country's sole refinery, has bought 500,000 tonnes of gasoil for power generation, industry sources said.
Continued attacks on a pipeline running through Egypt, Israel and Jordan has disrupted gas supply to the countries, in turn increasing demand for oil products like gasoil which are often used to fuel back-up power generators.
An explosion hit the Egyptian pipeline carrying gas to Israel and Jordan on April 9 for the 14th time since the uprising against President Hosni Mubarak began last year.
The refinery bought 500,000 tonnes of 0.5 percent sulphur gasoil for delivery over June to August from BB Energy at a premium of about $34 a tonne to Middle East quotes, one source said.
The prices are slightly weaker than for the 350,000 tonnes of gasoil purchased by Jordan for delivery in March from Vitol, when it paid a premium of $35.90 a tonne to Middle East quotes.
The pipeline link is run by Gasco, a subsidiary of Egypt's national gas company EGAS, and has been shut since Feb. 5 after an explosion.
The pipeline could begin operations by next week, a source based in Jordan said. But this could not be confirmed.
"If that's the case, then the awarded contract might be stretched for several months rather than for just three months," he said.
The disruption of natural gas supplies has not only affected Jordan but its neighbour Israel as well. The Jewish state had sought up to a million tonnes of gasoil on the international market in November.
Source: Reuters