Amman, Feb. 18 (Petra) -- The Lower House of Parliament approved, by a majority vote on Wednesday, the 2026 Gas Law designed to overhaul the Kingdom’s energy regulatory framework and catalyze investment in the burgeoning green hydrogen and natural gas sectors, after a detailed review of all 32 articles of the draft legislation.
Minister of Energy and Mineral Resources Saleh Kharabsheh noted that the National Petroleum Company operates under a concession agreement with a revenue-sharing arrangement with the Ministry of Finance. Acknowledging that current production levels are modest, Kharabsheh affirmed that the government has earmarked a dedicated budget over the next three years to finance development projects at the al-Risha gas field.
The law’s initial 18 articles, approved in earlier sessions, define general provisions, licensing requirements, and operational principles. Article 19 introduces penalties for license violations, including warnings, fines, temporary suspensions or revocations, and imposes an 18-month restriction on reapplication for revoked licenses. Article 20 grants employees of the Energy and Minerals Regulatory Commission (EMRC) judicial powers to investigate violations, with full cooperation required from other authorities.
Article 21 prohibits the construction or cross-border connection of pipelines without Cabinet approval, while Article 22 regulates the licensing and operation of shared-use facilities, including tendering, exclusivity, and agreements with Cabinet-designated entities. Article 23 mandates publication of an annual list of license applications and outcomes to ensure transparency. Article 24 requires operating companies to regularize their status within two years of enforcement, with a possible one-year extension if justified.
Articles 25 through 28 set penalties for obstructing inspections, providing false information, operating without licenses, and endangering public security, health, or the environment, while clarifying that more severe penalties under other laws remain applicable. Article 29 governs shared-use facilities, including green hydrogen certification, capacity allocation, and tariff calculations.
Article 30 assigns the Cabinet responsibility for issuing detailed regulations covering licensing, fees, violations, and cancellations.
Article 31 exempts natural gas, liquefied natural gas, and compressed natural gas from the Petroleum Derivatives Law while retaining existing regulations until new ones are issued. Article 32 charges the Prime Minister and relevant ministers with oversight of the law’s implementation.
The 2026 Gas Law is designed to provide a clear, flexible framework to support Jordan’s clean energy transition, facilitate investment, enhance transparency and competitiveness in the gas sector, and ensure the sustainable development of national energy resources.
//Petra// AJ
