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National plants to receive natural gas supplies to reduce energy cost

By JT - Mar 20,2016 - Last updated at Mar 20,2016

AMMAN — The Cabinet on Sunday decided to supply national industries with natural gas to enable them to generate energy at a low cost and enhance their competitiveness, the Jordan News Agency, Petra, reported.

The Council of Ministers tasked a steering committee with studying the decision's implementation and identifying priorities in providing gas based on available infrastructure at the targeted factories, according to Petra.

The agency quoted Energy Minister Ibrahim Saif as saying that the plants requiring natural gas will be connected to the network of the Jordanian Egyptian FAJR Company, which is responsible for transporting natural gas.

The decision, he said, entails enabling the National Electric Power Company (NEPCO), the main operator of the Sheikh Sabah Al Ahmad Terminal in Aqaba where natural gas is imported, to sell the surplus of gas through FAJR company to local plants.

Saif said this move is "important" because over 10 local plants have submitted requests to the ministry to switch from heavy fuel oil to natural gas.

With Jordan now receiving a steady supply of the gas, it is now possible to utilise the surplus after covering NEPCO's needs to serve other industries, the minister added.

Petra quoted him as saying that the ministry will now start taking the necessary measures to extend pipelines from FAJR's main line to supply local factories.

In July 2015, His Majesty King Abdullah inaugurated the Sheikh Sabah Al Ahmad Terminal in Aqaba, 330km south of Amman, used to pump liquefied natural gas to electricity-generating stations across the Kingdom.

In December last year, Aqaba Development Corporation CEO Ghassan Ghanem said using natural gas rather than crude oil to generate electricity not only saves the government millions of dinars, but it is also better for the environment.

 

At a meeting with reporters, he said that almost 60 per cent of the gas that Jordan imports comes from Nigeria, while 30 per cent comes from South America and 10 per cent from Qatar.

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