Jordan, Egypt sign natural gas pipeline agreement for Al Quweira Industrial Estate

AMMAN — The Aqaba Development Corporation (ADC) and Egypt Gas Company signed an agreement on Monday to supply natural gas to Al Quweira Industrial Estate in Aqaba.

ADC CEO Hussein Safadi and Chairman of Egypt Gas Company Wael Ahmed Gowaid signed the agreement in the presence of Minister of Energy and Mineral Resources Saleh Kharabsheh, the Jordan News Agency, Petra, reported. 

The agreement aims to establish a natural gas pipeline network, the necessary infrastructure, a control and operation building, and public safety systems in compliance with the highest international and local standards governing the gas sector.

During the signing ceremony, Kharabsheh said that this project is significant for alleviating the burden on the industrial sector, creating an investment-friendly environment, reducing production costs, optimising energy usage, reducing carbon emissions, and creating new job opportunities, which will enhance the competitiveness of Jordanian industries, according to Petra. 

The minister noted that the energy bill is a challenge for various sectors, particularly the industrial sector. 

He emphasised that the government, represented by the ministry, has launched a national programme to deliver natural gas to all industrial estates in the Kingdom, starting with Al Quweira.

Kharabsheh highlighted the positive impact of natural gas usage on the sector, given its cost is approximately 30 per cent lower than heavy fuel, 55 per cent lower than liquefied petroleum gas, and 60 per cent lower than diesel.

He added that these projects are part of the sustainable resources engine in the Economic Modernisation Vision, which aims to positively impact the business environment and attracting new foreign investments, as energy costs in Jordan have been one of the major obstacles to investment.

Safadi said that the project aims to increase reliance on natural gas for production processes in existing industries in the Al Quweira Industrial Estate, particularly in medium and heavy industries. 

He emphasised the strategic importance of the project, which represents a qualitative leap for industrial cities in Jordan in general and for Aqaba specifically, by developing and modernising the area according to the highest global standards in the sector.

Safadi indicated that initially, natural gas will be supplied through a gas network to industries in the industrial estate with a capacity of 30,000 cubic meters per hour over an area of some 1,800 dunums in the first phase, expandable to 90,000 cubic meters per hour in the future, with a pressure range of 7-26 bar. 

The project is expected to take around 11 months to complete from the start of implementation.

The capacity is expandable in two phases, first to 60,000 cubic meters per hour and then to 90,000 cubic meters per hour, to serve future industrial expansions in the area.

In 2023, the ADC signed an agreement with the Jordanian-Egyptian Fajr Company to construct a pressure reduction station with a range of 80-40 bar, a measurement station in Quweira Industrial Estate, and connect it to the Arab Gas Pipeline through a branch pipeline.