AMMAN - JORDAN - (April 30, 2002) Today the U.S. Trade and Development Agency (TDA) and the Hashemite Kingdom of Jordan, acting through the Ministry of Energy and Mineral Resources, entered into a grant agreement to partially fund a study on the development of a liquid propane gas (LPG) distribution network. U.S. Ambassador to Jordan, Edward William Gnehm, Jr., signed on behalf of the U.S. government. His Excellency Dr. Basem Awadallah, Minister of Planning, signed on behalf of the Hashemite Kingdom of Jordan. Under the agreement, TDA will provide the Government of Jordan a $200,628 grant to contract with Middle East Central Gas, Ltd. (MECG) of Arlington, VA to conduct a study of the technical, financial, economic, and environmental aspects of establishing a private liquid propane gas distribution network in the Amman metropolitan area.

This partnership reflects the growing interest by U.S. and Jordanian parties following the signing of the U.S.-Jordan Free Trade Agreement, which encourages increased business ties between our two nations. The purpose of the study is to demonstrate the commercial viability of establishing a centralized LPG distribution and marketing company, which would serve residential and commercial LPG customers in Jordan. At present, LPG is available in Jordan to residential and many commercial consumers only in the form of small cylinders that must be manually handled and frequently replaced. The gas delivery network proposed by MECG would be based in Amman and expanded over time to other large cities. Benefits to consumers will include: a) improved pricing with volume discounts and payments for actual consumption rather than by canister; b) improved safety as LPG is externally stored in large tanks rather than small canisters that are often stockpiled indoors; c) reduced servicing costs as larger storage units require fewer service calls; and d) improved customer service.

MECG views Jordan as an excellent venue in which to introduce and refine advanced LPG distribution technology before expanding to other regional Arab markets. Working together with the U.S. Embassy in Amman, the Foreign Commercial Service, and strong development partners in Jordan, TDA is actively seeking to support growth in Jordan's private sector and crucial industries.

The U.S. Trade and Development Agency promotes American private sector participation by helping U.S. companies pursue business opportunities in developing and middle income countries. Through the funding of feasibility studies, orientation visits, specialized training grants, business workshops, and various forms of technical assistance, TDA helps American businesses compete for infrastructure projects in emerging markets. In addition, the agency promotes capacity building initiatives and supports U.S. government trade, economic policy and development objectives around the world.

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