meed-logo

line1 line2 line3
SIGN IN / REGISTER

Jordan pushes ahead with gas plans

9 June 2025

 

Jordan has pushed ahead with plans to increase liquefied natural gas (LNG) imports and domestic gas production in recent months to meet growing domestic energy demand.

The country is developing a new LNG terminal and has signed significant deals to boost imports. It is also inviting companies to participate in a project to boost domestic production.

Jordan relies heavily on natural gas for its power and industrial needs. In 2022, natural gas was the country’s largest source of electricity generation, generating 73% of all electricity consumed in the country.

Aqaba terminal

In August 2024, Jordan’s Aqaba Development Corporation (ADC) awarded the main contract for a project to develop the Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah LNG onshore regasification facility in Jordan’s port of Aqaba.

The contract was won by a consortium of Singapore-based AG&P and South Korea’s Gas Entec, along with their local partner, Jordan’s Issa Haddadin.

AG&P has majority ownership of Gas Entec, and ADC is owned by the Government of Jordan and the Aqaba Special Economic Zone Authority.

The facility will have the capacity to process 720 million standard cubic feet a day (cf/d) of natural gas.

The exact value of the contract was not disclosed by ADC or the consortium awarded the project, but the facility has been estimated to be worth about $1bn by regional projects tracker MEED Projects.

The $1bn price tag makes it the biggest active project that has progressed beyond the study stage across Jordan’s oil, gas and chemical sectors, according to MEED Projects data.

The project was originally scheduled to be completed, commissioned and delivered within 22 months, with the project due to be commissioned by the second quarter of 2026.

The new permanent LNG import terminal is expected to replace an existing floating storage regasification unit (FSRU) located in Aqaba port that began operations in 2025.

Egyptian deal

While Jordan waits for the permanent Aqaba terminal to come online, authorities in the country have had to make interim deals to meet domestic energy demand.

In December, Jordan and Egypt signed an agreement that enables Jordan to use Egypt’s FSRUs for a period of two years.

The agreement was signed in Cairo by the director-general of Jordan’s National Electric Power Company (Nepco), Sofyan Batayneh, and the chairman of Egyptian Natural Gas Holding Company (Egas), Yassin Mohamed.

Jordan’s Minister of Energy and Mineral Resources Saleh Kharabsheh called the agreement “a milestone” in Jordanian-Egyptian energy cooperation.

He also said it could potentially increase resource efficiency and cut costs for Jordan.

Under the agreement, Jordan will have priority access to Egypt’s FSRUs, with 350 million cf/d of natural gas allocated to meet Jordan’s needs.

The cost of Jordan’s LNG shipments is expected to be around $3m each, with an additional $5m for transport via the Egyptian gas network.

Total annual costs are capped at $10m, a far lower cost than the $70m spent on imports via the Aqaba floating LNG terminal, according to a statement released in December.

Under the current plans, Jordan will rely on Egypt’s FSRUs until 2026, when the land-based regasification facility under construction in Aqaba is expected to become operational.

Boosting domestic production

At the same time as investing in infrastructure that will make it possible to import large volumes of natural gas, the country is also trying to boost domestic gas production to reduce its reliance on natural gas.

A key focus for Jordan when it comes to increasing domestic production is the Risha gas field, which is located in northeast Jordan, 370 kilometres east of Amman, near the Iraqi border.

The field has been producing since 1989, but over recent months, there has been increased optimism about its potential to meet a much higher proportion of domestic energy needs.

Speaking at a ceremony in May, Kharabsheh said that the government was working to fully meet the kingdom’s natural gas needs from the Risha gas field within the next five years through the efforts of National Petroleum Company (NPC).

His comments came after the Ministry of Energy & Mineral Resources released the results of gas exploration in the area in November last year.

According to the results published by the ministry, the medium estimate for gas reserves in the area suggests that the field holds 11.99 trillion cubic feet of in-place reserves, with 39% or 4.675 trillion cubic feet potentially recoverable.

The lower-end estimates indicated reserves of 9.39 trillion cubic feet, with 30% recoverable, amounting to around 2.835 trillion cubic feet.

The highest estimate placed reserves at 14.6 trillion cubic feet, with a potential 43% recovery rate, amounting to 6.35 trillion cubic feet.

Since 2022, the Jordanian government has directed significant resources to oil and gas exploration, with NPC leading studies in cooperation with international experts.

The final phase of the most recent exploration assessments included reserve certification by Beicip-Franlab, a leading French energy consultancy.

Development plans

As part of the initiative to further develop the Risha field, there are plans for more drilling and a gas pipeline.

In April, NPC issued an invitation to companies to submit prequalification documents to participate in a tender for a contract to drill 80 wells at the field.

The drilling campaign is part of a broader push to try to boost gas production to 200 million cf/d by the end of the decade.

Plans are also under way to build a 320km gas pipeline connecting the Risha field to Al-Khanasri.

The first phase of the pipeline is expected to transport 150 million standard cf/d, with the second phase expanding its capacity to 500 million cf/d.

While Jordan pushes ahead with plans for more drilling and more infrastructure at the Risha field, there are no guarantees that this will lead to a large increase in domestic production.

The simultaneous expansion of the country’s LNG import capabilities means that natural gas is set to remain a major part of the country’s energy mix for some time to come.

https://image.digitalinsightresearch.in/uploads/NewsArticle/14033344/main.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Oman’s growth forecast points upwards

    24 December 2025

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15306449/main.gif
    MEED Editorial
  • December 2025: Data drives regional projects

    23 December 2025

    Click here to download the PDF

    Includes: Top inward FDI locations by project volume | Brent spot price | Construction output

    MEED’s January 2026 report on Oman includes:

    > COMMENT: Oman steadies growth with strategic restraint
    > ECONOMY: Oman pursues diversification amid regional concerns
    > BANKING: Oman banks feel impact of stronger economy
    > OIL & GAS: LNG goals galvanise Oman’s oil and gas sector
    > POWER & WATER: Oman prepares for a wave of IPP awards
    > CONSTRUCTION: Momentum builds in construction sector

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15306140/main.gif
    MEED Editorial
  • Local firm bids lowest for Kuwait substation deal

    22 December 2025

    The local Al-Ahleia Switchgear Company has submitted the lowest price of KD33.9m ($110.3m) for a contract to build a 400/132/11 kV substation at the South Surra township for Kuwait’s Public Authority for Housing Welfare (PAHW).

    The bid was marginally lower than the two other offers of KD35.1m and KD35.5m submitted respectively by Saudi Arabia’s National Contracting Company (NCC) and India’s Larsen & Toubro.

    PAHW is expected to take about three months to evaluate the prices before selecting the successful contractor.

    The project is one of several transmission and distribution projects either out to bid or recently awarded by Kuwait’s main affordable housing client.

    This year alone, it has awarded two contracts worth more than $100m for cable works at its 1Z, 2Z, 3Z and 4Z 400kV substations at Al-Istiqlal City, and two deals totalling just under $280m for the construction of seven 132/11kV substations in the same township.

    Most recently, it has tendered two contracts to build seven 132/11kV main substations at its affordable housing project, west of Kuwait City. The bid deadline for the two deals covering the MS-01 through to MS-08 substations is 8 January.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15305745/main.gif
    Edward James
  • Saudi-Dutch JV awards ‘supercentre’ metals reclamation project

    22 December 2025

    The local Advanced Circular Materials Company (ACMC), a joint venture of the Netherlands-based Shell & AMG Recycling BV (SARBV) and local firm United Company for Industry (UCI), has awarded the engineering, procurement and construction (EPC) contract for the first phase of its $500m-plus metals reclamation complex in Jubail.

    The contract, estimated to be worth in excess of $200m, was won by China TianChen Engineering Corporation (TCC), a subsidiary of China National Chemical Engineering Company (CNCEC), following the issue of the tender in July 2024.

    Under the terms of the deal, TCC will process gasification ash generated at Saudi Aramco’s Jizan refining complex on the Red Sea coast to produce battery-grade vanadium oxide and vanadium electrolyte for vanadium redox flow batteries. AMG will provide the licensed technology required for the production process.

    The works are the first of four planned phases at the catalyst and gasification ash recycling ‘Supercentre’, which is located at the PlasChem Park in Jubail Industrial City 2 alongside the Sadara integrated refining and petrochemical complex.

    Phase 2 will expand the facility to process spent catalysts from heavy oil upgrading facilities to produce ferrovanadium for the steel industry and/or additional battery-grade vanadium oxide.

    Phase 3 involves installing a manufacturing facility for residue-upgrading catalysts.

    In the fourth phase, a vanadium electrolyte production plant will be developed.

    The developers expect a total reduction of 3.6 million metric tonnes of carbon dioxide emissions a year when the four phases of the project are commissioned.

    SARBV first announced its intention to build a metal reclamation and catalyst manufacturing facility in Saudi Arabia in November 2019. The kingdom’s Ministry of Investment, then known as the Saudi Arabian General Investment Authority (Sagia), supported the project.

    In July 2022, SARBV and UCI signed the agreement to formalise their joint venture and build the proposed facility.

    The project has received support from Saudi Aramco’s Namaat industrial investment programme. Aramco, at the time, also signed an agreement with the joint venture to offtake vanadium-bearing gasification ash from its Jizan refining complex.

    Photo credit: SARBV

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15305326/main.gif
    Edward James
  • QatarEnergy LNG awards $4bn gas project package

    22 December 2025

    QatarEnergy LNG, a subsidiary of state-owned QatarEnergy, has awarded the main engineering, procurement, construction and installation (EPCI) contract for a major package for the second phase of its North Field Production Sustainability (NFPS) project.

    A consortium comprising the Italian contractor Saipem and state-owned China Offshore Oil Engineering Company (COOEC) has secured the EPCI contract for the COMP5 package. The contract value is $4bn, with Saipem declaring its share to be worth $3.1bn.

    Milan-headquartered Saipem said the contract will run for about five years. The scope of work comprises engineering, procurement, fabrication and installation of two compression complexes, each including a compression platform, a living quarters platform, a flare platform supporting the gas combustion system, and the related interconnecting bridges. Each complex will have a total weight of about 68,000 tonnes.

    Offshore installation operations will be carried out by Saipem’s De He construction vessel in 2029 and 2030.

    MEED previously reported that the following contractors submitted bids for the NFPS phase two COMP5 package:

    • Larsen & Toubro Energy Hydrocarbon (India)
    • McDermott (US)
    • Saipem/China Offshore Oil Engineering Company (Italy/China)

    QatarEnergy LNG, formerly Qatargas, is said to have issued the tender for the NFPS phase two COMP5 package in the first quarter of the year.

    Contractors submitted technical bids for the COMP5 package in late June, while commercial bids were submitted by 8 October, as per sources.

    Based upon initial evaluation of bids by QatarEnergy LNG, L&TEH has emerged as the lowest bidder for the COMP5 package, followed by McDermott, with the consortium of Saipem and COOEC in third place, MEED reported in late October.

    In the weeks following that, the project operator is said to have engaged all bidders for a final round of negotiations, during which the consortium of Saipem and COOEC is believed to have “clinched the deal”, according to sources.

    The detailed scope of work on the COMP5 package covers the EPCI work on the following:

    • Two gas compression platforms, each weighing 30,000-35,000 tonnes, plus jacket
    • Two living quarters platforms, plus jacket
    • Two gas flare platforms, plus jacket
    • Brownfield modification work at two complexes
    NFPS scheme

    QatarEnergy’s North Field liquefied natural gas (LNG) expansion programme requires the state enterprise to pump large volumes of gas from the North Field offshore reserve to feed the three phases of the estimated $40bn-plus programme.

    QatarEnergy has already invested billions of dollars in engineering, procurement and construction works on the two phases of the NFPS project, which aims to maintain steady gas feedstock for the North Field LNG expansion phases.

    The second NFPS phase will mainly involve building gas compression facilities to sustain and gradually increase gas production from Qatar’s offshore North Field gas reserve over the long term.

    Saipem has been the most successful contractor on the second NFPS phase, securing work worth a total of $8.5bn.

    QatarEnergy LNG awarded Saipem a $4.5bn order in October 2022 to build and install gas compression facilities. The main scope of work on the package, which is known as EPCI 2, covers two large gas compression complexes that will comprise decks, jackets, topsides, interconnecting bridges, flare platforms, living quarters and interface modules.

    The gas compression complexes – CP65 and CP75 – will weigh 62,000 tonnes and 63,000 tonnes, respectively, and will be the largest fixed steel jacket compression platforms ever built.

    Following that, Saipem won combined packages COMP3A and COMP3B of the NFPS project’s second phase in September last year.

    The scope of work on the combined packages encompasses the EPCI of a total of six platforms, approximately 100 kilometres (km) of corrosion resistance alloy rigid subsea pipelines of 28-inches and 24-inches diameter, 100km of subsea composite cables, 150km of fibre optic cables and several other subsea units.

    Separately, QatarEnergy LNG awarded McDermott the contract for the NFPS second phase package known as EPCI 1, or COMP1, in July 2023. The scope of work on the estimated $1bn-plus contract is to install a subsea gas pipeline network at the North Field gas development.

    In March this year, India’s Larsen & Toubro Energy Hydrocarbon (LTEH) won the main contract for the combined 4A and 4B package, which is the fourth package of the second phase of the NFPS project and is estimated to be valued at $4bn-$5bn.

    The main scope of work on the package is the EPCI of two large gas compression systems that will be known as CP8S and CP4N, each weighing 25,000-35,000 tonnes. The contract scope also includes compression platforms, flare gas platforms and other associated structures.

    LTHE sub-contracted detailed engineering and design works on the combined 4A and 4B package to French contractor Technip Energies.

    NFPS first phase

    Saipem is also executing the EPCI works on the entire first phase of the NFPS project, which consists of two main packages.

    Through the first phase of the NFPS scheme, QatarEnergy LNG aims to increase the early gas field production capacity of the North Field offshore development to 110 million tonnes a year.

    QatarEnergy LNG awarded Saipem the contract for the EPCI package in February 2021. The package is the larger of the two NFPS phase one packages and has a value of $1.7bn.

    Saipem’s scope of work on the EPCI package encompasses building several offshore facilities for extracting and transporting natural gas, including platforms, supporting and connecting structures, subsea cables and anti-corrosion internally clad pipelines.

    The scope of work also includes decommissioning a pipeline and other significant modifications to existing offshore facilities.

    In addition, in April 2021, QatarEnergy LNG awarded Saipem two options for additional work within the EPCI package, worth about $350m.

    QatarEnergy LNG awarded Saipem the second package of the NFPS phase one project, estimated to be worth $1bn, in March 2021.

    Saipem’s scope of work on the package, which is known as EPCL, mainly covers installing three offshore export trunklines running almost 300km from their respective offshore platforms to the QatarEnergy LNG north and south plants located in Ras Laffan Industrial City.

    Saipem performed the front-end engineering and design work on the main production package of the first phase of the NFPS as part of a $20m contract that it was awarded in January 2019. This provided a competitive advantage to the Italian contractor in its bid to win the package.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15305330/main2239.jpg
    Indrajit Sen