AMMAN — Minister of Energy and Mineral Resources Saleh Kharabsheh on Thursday attended the signing of agreements to supply and sell natural gas to the Jordan-Japan Fertiliser Company (Nippon) plant in Aqaba’s southern region.

 

The agreements were signed between Nippon, the Jordanian-Egyptian Fajr Company, and Tanmia Natural Gas Company, in the presence of Jordan Phosphate Mines Company (JPMC) Chairman Mohammad Thneibat, Nippon Chairman Fares Qatarneh, and Energy and Minerals Regulatory Commission Chairman Ziad Saaida, according to a ministry statement.

 

Kharabsheh said the agreement would directly support national industries, particularly JPMC’s operations, by reducing energy costs and enhancing competitiveness in local and international markets. He noted that natural gas is the most cost-effective and environmentally suitable energy source for industries, adding that the ministry is working through the national programme to deliver gas to industrial cities and clusters across the Kingdom.

 

Thneibat said the agreement was the second of its kind, following one signed four years ago, and reaffirmed JPMC’s readiness to cooperate on future projects, including producing ammonia and extracting sulphur from gas produced at the Risha field.

 

Fajr CEO Fouad Rashad said the use of natural gas would lower production costs, improve the competitiveness of Jordanian products globally, create jobs, and support the Kingdom’s net-zero emissions goals.

 

Nippon Director-General Abdul Wahhab Rawad said the plant would receive 225,000 cubic feet of gas daily to replace heavy fuel oil, reducing energy costs, cutting maintenance needs, and boosting productivity.

 

Nippon produces around 300,000 tonnes of fertilisers annually, with the new fuel source expected to improve competitiveness and increase exports, according to the statement.

 

Kharabsheh also attended the signing of two strategic agreements between the Jordan Oil Terminals Company (JOTC), the Jordan Industrial Estates Company (JIEC) and the Ma’an Development Company to develop, operate, and own natural gas infrastructure in the Muwaqar Industrial Estate and the Al Rawda Industrial Estate in the Ma’an Development Area.

 

The minister said the projects would expand the national gas network, reduce energy costs for factories, increase industrial competitiveness, and attract new investments, especially in energy-intensive sectors. He noted that natural gas costs are about 30 per cent lower than heavy fuel oil, 55 per cent lower than liquefied petroleum gas, and 60 per cent lower than diesel.

 

JIEC Director-General Omar Jweid said the project would directly reduce energy costs for industries and enhance the competitiveness of Jordanian products in global markets, while Ma’an Development Company Director-General Ayman Sharari said supplying the Al Rawda Industrial Estate with natural gas would help lower production costs, improve quality and open new export markets.