AMMAN — Chairman of the Jordan Chamber of Industry (JCI), Fathi Jaghbir, said that supplying factories with natural gas is one of the "key strategic" projects in the second executive programme of the Economic Modernisation Vision (EMV), given its direct impact on enhancing competitiveness of Jordanian industry and supporting its sustainable growth.

 

He noted reliance on natural gas provides a "more efficient and less costly" alternative, compared to traditional fuels such as diesel and heavy fuel oil, which contributes to reducing production costs and increasing the factories' "competitiveness", according to the Jordan News Agency, Petra.

 

Jaghbir added that the project's importance gains further horizon as Amman and Zarqa represent the industrial heart of the Kingdom, accounting for approximately 60 per cent of all industrial establishments, making any development of the energy infrastructure in these cities a direct impact on national production.

 

He said the project will improve the Kingdom's investment climate, as the availability of natural gas is a "crucial" factor in investors' future choices of their industrial sites.

 

This project will also meet the growing demand for industrial energy across various energy-intensive sectors, mainly chemicals, petrochemicals, plastics, rubber, construction, food processing, and carpet and rug manufacturing, he pointed out.

 

Jaghbir noted the project aligns with the national drive to shift to a green economy by reducing carbon emissions and improving the sustainability of factory operations.

 

He indicated that this process will enhance compliance with international environmental commitments and increase Jordan's ability to attract modern industrial investments, adding that the project plays a "vital" role in reducing production and operating costs in factories.

 

Regarding feasibility, Jaghbir pointed out that studies indicate that switching from diesel and heavy fuel oil to natural gas can achieve energy cost savings ranging from 35 per cent to 50 per cent.

 

He noted this process depends on the fuel type and the industrial sector, which is due to the high combustion efficiency of natural gas, which reduces carbon build-up in machinery and equipment, lowers maintenance costs, and extends equipment lifespan.

 

He stated the project goal is to reduce energy waste, improve production continuity, and lower environmental emissions, which would enhance compliance with global environmental standards and make factories "more competitive" in local, regional, and international markets.

 

Jaghbir noted reducing energy costs is a key factor in improving "competitiveness" of Jordanian industry, as energy costs in production processes reach around 30-35 per cent of total production costs, and can exceed 40 per cent in some sectors such as plastics, rubber, and construction industries.

 

He affirmed using natural gas allows for improved profitability for factories, reduces gap in production costs with competitors in neighbouring countries and enables them to improve product quality and raise levels of industrial innovation, Petra reported.