‘Invest in Jordan’ platform showcases gas distribution network project

AMMAN — The Ministry of Investment on Sunday unveiled a range of investment opportunities on the newly-launched "Invest in Jordan" platform.

Among the available opportunities is a gas distribution network project aimed at providing cost-effective gas supplies in Amman and Zarqa to address increasing fuel prices.

The project entails the implementation of a 61-kilometre primary pipeline network that will connect to source and destination networks, supplying natural gas to residential and commercial buildings, hotels, as well as the electricity, industrial and transportation sectors in both cities.

According to the platform, the projected investment size for the initiative amounts to $537 million, with an expected internal rate of return of 16 per cent.

Highlighting the project's value-added benefits, the platform said that the project contributes to eco-friendliness by offering a cleaner energy source in comparison to oil-derived fuels. 

Moreover, it is anticipated to reduce energy costs relative to liquefied petroleum gas, fuel and diesel. The shift towards natural gas is expected to foster comprehensive economic growth, according to the Jordan News Agency, Petra. 

The project advantageously provides a cost-effective alternative to liquid fuels for consumers, and promotes the utilisation of natural gas in an array of sectors to lessen reliance on heavy fuels and mitigate harmful carbon dioxide emissions. Furthermore, it aims to enhance industrial competitiveness by lowering production costs.

Significant highlights of the project include an upsurge in the adoption of clean energy by industries, with average daily natural gas consumption in industrial operations reaching 24 million cubic feet in 2021.

The project's proximity to the major industrial cluster between Zarqa and Amman is expected to stimulate business activities and industrial production, resulting in a shift in energy consumption patterns.

Investors are expected to undertake the design, construction, financing, operation and maintenance of the gas network under a fixed-duration, long-term lease agreement. Upon the completion of the lease period, the network will go to the public sector.

The platform identifies several project benefits, including harmonious gas supply contracts, government incentives to utilise natural gas across all sectors, the establishment of a network with provisions for future hydrogen utilisation, the option for a build-operate-transfer (BOT) contract and the balancing of subsidies.