Amman, Jan. 6 (Petra) -- 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.
At the signing ceremony, Minister of Energy and Mineral Resources Saleh Kharabsheh said the agreement reflects the depth of cooperation across the energy sector and supports efforts to expand the use of domestically produced natural gas. He noted that the arrangement strengthens reliance on local energy resources while ensuring sustainable financing for the National Petroleum Company’s operations.
Kharabsheh said the agreement, the first of its kind in the Kingdom, establishes a comprehensive framework governing the purchase of gas from the National Petroleum Company by the Jordan Oil Terminals Company, as well as processing and transportation services to Samra Electric Power Company’s facilities through Jordan LNG, for use by the National Electric Power Company.
Under the agreement, the Jordan Oil Terminals Company will purchase natural gas in line with 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 quantities to be gradually increased under a clear and binding timetable agreed upon by all parties, reaching up to 20 million cubic feet per day.
The agreement contributes to the objectives of the National Energy Strategy by increasing the share of local energy sources in the national energy mix. It also provides a stable revenue stream for the National Petroleum Company, enabling the implementation of its plans to drill additional wells and raise production levels at the al-Risha gas field. The use of natural gas, which is more cost-efficient than conventional fuels, also 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.
//Petra// AJ
