Amman - March 27, 2024 - Under the patronage of the Minister of Energy and Mineral Resources, Dr. Saleh Al-Kharabsheh, the Jordanian Logistics Company for Oil Facilities (GOTEC) and the Jordanian Industrial Estates Company signed, today, Wednesday, a memorandum of understanding to supply natural gas to the Muwaqqar Industrial City.

 The memorandum was signed by GOTECH, its General Manager, Engineer Hassan Al-Hayari, and by the Industrial Estates Company, General Manager Omar Juwayed, in the presence of Chairman of the Board Directors of the Industrial Estates, Dr. Louay Sahwil, the Chairman of the GOTECH Board of Directors, Shadi Ramzi Al-Majali, and the Assistant Director General for Operations Affairs, Eng. Alaa Zureikat, and Director of Commercial and Purchasing Department Eng. Muhammad Al-Qatasha.

Minister Al-Kharabsheh stressed the importance of the memorandum as an important step in a major national project to encourage the use of natural gas in industries within the priorities of the economic modernization vision. According to the agreement, the two parties reached an agreement to establish an infrastructure and a gas network within the city of Al-Muwaqqar, in addition to containing a study on how to establish, own, finance, manage and operate this network.

 Al-Kharabsheh pointed to the ministry’s efforts in cooperation with partners to support the national economy and support investors in the industrial sector by reducing the sector’s energy costs by increasing the contribution of natural gas to the total energy mix, noting that the energy bill constitutes a burden on the industrial sector, while natural gas is considered a fuel. More efficient and economical, as its use saves more than 50% of the energy bill for industries compared to other fuel sources. Therefore, its use improves the competitiveness of national industries, increases their exports, expands investment opportunities, and creates more job opportunities.

 He added that the Ministry is working within a national plan to deliver natural gas to industries and industrial clusters, which aims to deliver natural gas to industrial cities and clusters such as Al-Qastal Industrial City and Al-Hashimiya Industrial Cluster. Natural gas will also be delivered to Al-Quwayra Industrial City in the future.

Regarding the Ministry’s steps in providing a sustainable source of gas in Jordan, Al-Kharabsheh said that the Ministry is working on a project to establish an onshore gasification unit and its accessories for the purposes of storing imported gas, in addition to leading national efforts in cooperation with the National Petroleum Company to increase the quantities of gas produced locally, stressing that these efforts are aimed at Strengthening the energy security system and natural gas supply sources.

 In turn, Al-Hiyari confirmed that GOTEK assumed the tasks required by the State Natural Gas Company, with the aim of increasing the contribution of natural gas to the total energy mix to reduce the cost of energy on the national economy. This includes studying how to implement the new infrastructure to supply industrial cities and implementing the internal network of industrial cities for the purposes of delivering natural gas for cities and industrial clusters, noting that the memorandum of understanding paves the way for the later signing of an agreement to supply gas to Al-Muwaqqar Industrial City.

Al-Hiyari pointed out that the delivery of natural gas to the city of Al-Muwaqqar, as the first industrial city, will benefit from the project, and work will continue to supply other industrial cities in the future, God willing.

For his part, Juwayed explained that the agreement signed today comes to establish the official framework for delivering natural gas to the largest industrial city in the Kingdom, which is a practical step in this regard, pointing out that Al-Muwaqqar Industrial City includes 100 industrial investments with an investment volume of 700 million dinars, and the city provides 5,000 job opportunities.

 Juwayed pointed out that the objectives of the Industrial Cities Company include establishing, developing and managing industrial cities on a scale that includes all governorates of the Kingdom in the comprehensive concept of these cities, which combines the provision of basic services and infrastructure services such as water, electricity, roads, communications and support services. The company is also working to prepare the investment structure and enhance Elements of attracting industrial investments by providing integrated infrastructure elements and services necessary to attract and localize investments.

 For his part, Sahwil said that energy is a major component of industrial production costs, appreciating the impact of the project, which will increase the attractiveness of industrial investments in Jordan, stressing that the industrial cities embrace about 920 industrial investments with an investment volume exceeding 3 billion dinars, and these cities provide about 65 thousand job opportunities for the Kingdom.

 The priority of supplying industrial cities in the economic modernization vision includes supporting the delivery of natural gas to three industrial cities, including Al-Muwaqqar Industrial City in the capital, Amman, Al-Rawda Industrial City in Ma’an Governorate, and the Development City in Mafraq Governorate.

The  Cabinet Resolution No. (14192) issued on 11/12/2023 approving the assignment of the Jordanian Oil Facilities Logistics Company (GOTEC) to assume the tasks required by the Government Natural Gas Company, aims to increase the contribution of natural gas to the overall energy mix to reduce the cost of energy on the national economy.