May 17, 2024 - Today, Friday, Minister of Energy and Mineral Resources Dr. Saleh Al-Kharabsheh inaugurated the Compressed Natural Gas Station affiliated with Jordan Gas Company in the Risha area, northeast of Jordan.

Al-Kharabsheh stated during the inauguration that the project is the first of its kind in the Kingdom to supply industries with compressed natural gas. It is considered one of the important energy projects in the current phase and one of the key initiatives that we are following within the Executive Program for Economic Modernization Vision.

He explained that the compressed gas project is one of three expected projects to produce compressed natural gas in the Risha area. The gas produced from these projects will be transported for industrial use as a fuel source through specialized tanks.

The Minister mentioned that the project consists of two stations: the main station located in the Risha gas field area and the subsidiary station located near consumers.

He added that this step aims to utilize the additional quantities produced from the Risha gas field by allowing private sector investors to transport the gas from the area to consumption centers through tanks after compression and liquefaction, to supply consumers with natural gas. This contributes to increasing reliance on local sources, expanding job opportunities, and reducing operational costs for industries.

Al-Kharabsheh emphasized that the project primarily aims to support the national industry and economic sectors in the Kingdom. The savings percentage using natural gas compared to diesel is estimated to be more than 50%, and compared to heavy fuel, it's more than 20%. As for liquefied gas, the savings percentage is estimated to be more than 40%.

He also noted that the quantity supplied from the National Petroleum Company to Jordan Gas Company reaches 12 million cubic feet per day, and the capacity of the main station, which has been constructed, is 20 million cubic feet per day.

The Minister mentioned that in addition to the project to deliver natural gas to industrial cities, the Ministry is also working on delivering natural gas to the cities of Amman and Zarqa as part of its plans to provide a clean, sustainable, and cost-effective energy source.

On his part, the General Manager of Jordan Gas Company, Salah Al-Khazaaleh, expressed his pride today in operating the first-of-its-kind project in Jordan. The company will work on transporting the natural gas coming from the Risha station after compression and supply it to national industries.

Al-Khazaaleh added that the project targets the industrial sector and contributes to supporting Jordanian industries by enabling them to compete regionally and globally. He considered the project as a beginning for Jordan Gas Company, which looks forward to many future projects.

Jordan Gas Company has begun signing agreements with some industrialists, in addition to establishing a receiving station in the Aqaba Industrial City.

Since March 2023, the Ministry of Energy and Mineral Resources, through the Petroleum Derivatives Pricing Committee, has been announcing monthly prices for the sale of compressed and liquefied natural gas to the end consumer. This includes the monthly price of natural gas produced from the Risha gas field and sold to the private sector, plus the commission value for companies interested in this activity.

It is worth mentioning that the National Petroleum Company has signed agreements for the sale and purchase of compressed natural gas produced from the Risha gas field with three Jordanian companies, to convert natural gas into compressed gas and liquefied gas (LNG, CNG) and transport it to consumption sites in central Jordan. These companies include Jordan Gas Company, UNIGAZ, and Modern Jordanian Company for Oils and Fuels Services - Al-Manaseer.

It is expected that the operational costs for industries using natural gas will decrease by (25%-50%), which will have a direct impact on the industrial sector in Jordan, increasing its competitiveness due to cost reductions, in addition to improving the revenues of the National Petroleum Company and enabling it to expand its programs and projects to increase production capacity from the field as the company funds its operations and projects independently.

Attending the inauguration were the Chairman of the Energy and Minerals Sector Commissioners Board, the Commander of the Eastern Military Region/Jordanian Armed Forces, the General Manager of the Jordanian Logistics Company for Oil Facilities, and the Chairman of the Board of Directors of the National Petroleum Company.