Maan refinery to commence operations by 2024 — investor

AMMAN — Production at the petroleum refinery in Maan is set to begin in the second half of 2024, according to a Kuwaiti project investor.

During a press conference on Wednesday, investor Sheikh Mishaal Al Jarrah Al Sabah said that the new investment, which recently obtained initial approval from the Ministry of Energy, is divided into two projects. 

The first is an oil refinery with a refining capacity of 150,000 barrels of  crude oil per day for export purposes, and the second is a petrochemical complex, he noted. 

He stressed that the project, which receives support from His Majesty King Abdullah and the Emir of Kuwait, will work to transform Jordan into "a source instead of an importer of energy", the Jordan News Agency, Petra, reported.

 He added that the project will provide thousands of local jobs.

Sabah also announced that a training institute will be established in Maan for young people in the oil and transformative industries, adding that training will coincide with the stages of establishing the refinery.

The project is a joint investment of Jordanian, Kuwaiti and American investors, Sabah said, affirming that the funding for the project as planned “is available” and that the "best contractors" would be chosen to take on the project.

On Tuesday, the Energy Ministry granted its initial approval to establish the refinery and petrochemicals complex in Maan. 

The initial approval stipulates that the investor abide by the terms endorsed by the Cabinet in early 2019, which require the company to follow proper technical and financial guidelines. The terms do not require the government to present any guarantees to secure raw materials for the refining process, the ministry noted. 

The terms also exempt the government from any financial and contractual obligations, whereas the refinery will work on a commercial basis with marketing companies that have the right to import and sell oil derivatives in the Kingdom.

The terms also call for taking into consideration the Aqaba terminal's capacity to accommodate imported raw oil and the needs of the Jordan Petroleum Refinery Company. 

The approval also stipulates that the project investors secure a plot of land for the refinery and complex, and that the ministry is free of any obligations in this regard. 

The terms also highlighted the importance of abiding by the oil derivatives law.