Amman: The National Petroleum Company, the Jordan Logistics Company for Oil Facilities, the National Electric Power Company, Jordan LNG, Samra Electric Power Company, and the National Advanced Natural Gas Company (Watani) on Tuesday signed an agreement to sell and supply natural gas produced from the al-Risha gas field to the Kingdom's electricity grid.
According to Jordan News Agency, Minister of Energy and Mineral Resources Saleh Kharabsheh highlighted that the agreement reflects the cooperation across the energy sector and supports efforts to expand the use of domestically produced natural gas. He pointed out that this arrangement strengthens reliance on local energy resources while ensuring sustainable financing for the National Petroleum Company's operations.
Kharabsheh mentioned that the agreement, the first of its kind in the Kingdom, provides a comprehensive framework governing the purchase of gas from the National Petroleum Company by the Jordan Oil Terminals Company. It also covers processing and transportation services to Samra Electric Power Company's facilities via Jordan LNG, intended for use by the National Electric Power Company.
Under the agreement, the Jordan Oil Terminals Company will purchase natural gas based on the operational requirements of the electricity grid, as determined by the National Electric Power Company. The initial supply volume is set at about 2.5 million cubic feet per day, with plans to gradually increase this quantity following a clear timetable agreed upon by all parties, reaching up to 20 million cubic feet per day.
The agreement aligns with the objectives of the National Energy Strategy by boosting the share of local energy sources in the national energy mix. It also provides a stable revenue stream for the National Petroleum Company, supporting its plans to drill additional wells and increase production levels at the al-Risha gas field. Additionally, the use of natural gas, which is more cost-efficient than conventional fuels, supports environmental sustainability through lower emissions.
The Cabinet approved the agreement to supply natural gas from the al-Risha gas field to the electricity grid on October 22, 2024.