Tunis:Afaq Energy has received conditional government approval to fully acquire Advanced Central Gas LLC, a distributor of liquefied petroleum gas (LPG). This approval is subject to specific measures designed to preserve market competition.
According to Jordan News Agency, Minister of Industry, Trade and Supply Yarub Qudah issued Decision No. 3 of 2026 after reviewing a recommendation from the Director General of the Competition Protection Department. The review highlighted potential risks to competition, noting that the acquisition could negatively impact small and medium-sized companies or deter new entrants if Afaq Energy leveraged its market power and resources to offer favorable payment terms, discounts, or free infrastructure installation.
The market is regulated by the Energy and Minerals Regulatory Commission, and LPG prices are determined through an official pricing formula, which offers consumer protection against price-related effects of the acquisition. Nonetheless, to mitigate concerns, the approval includes several regulatory, structural, and behavioral conditions that the involved companies must adhere to.
The conditions prohibit companies from offering payment terms longer than 30 days or providing discounts on gas supply prices. Additionally, they cannot replace competitors' gas distribution networks without charging for the new infrastructure, nor can they install networks for free in exchange for exclusive agreements with micro and small enterprises.
Moreover, the decision mandates full administrative and marketing separation between Afaq Energy's centralized gas distribution companies. It bars the use of one company's assets for another's benefit, forbids intentional workforce reductions, and requires the protection of employees' rights.
The Competition Protection Department has warned that any breach of these commitments would nullify the approval, necessitate the reversal of the acquisition, and result in fines as outlined by law. Under Competition Law No. 33 of 2004, economic concentration transactions require written ministerial approval if the annual domestic revenue of any company involved exceeds JD10 million or if their combined revenue exceeds JD30 million. Violations of these conditions will result in fines ranging from JD10,000 to JD50,000, with offenders potentially facing legal action for noncompliance.