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
  • SAR tenders design review consultancy for GCC rail link

    18 September 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia Railways (SAR) has issued a request for proposals (RFP) for a design management and review consultant to oversee engineering works on the GCC railway network, the latest step in advancing the long-delayed regional rail link.

    The RFP was issued on 9 September, with a submission deadline of 18 October.

    The tender seeks a consultant to manage, audit and verify deliverables produced by SAR's separately appointed design services consultant, rather than carry out the design itself. The tendering for the design services consultancy is currently in progress.

    Construction will be tendered separately through competitive bidding once designs are approved.

    The GCC railway will run for about 672 kilometres (km) inside Saudi Arabia, linking the kingdom's existing network to Kuwait, Qatar, the UAE and Bahrain, with four sections of about 141km, 200km, 151km and 21km, respectively.

    The line is planned as a single-track, non-electrified corridor for mixed freight and passenger traffic, with a maximum axle load of 32.4 tonnes and passing loops for bidirectional working.

    The appointed consultant will develop a design management and review plan covering governance, interdisciplinary coordination and stage-gate approvals, and will issue formal review and audit reports against SAR's requirements and international standards.

    The scope also covers stakeholder engagement, interface management and oversight of land acquisition activity tied to the design consultant's land acquisition plan.

    Key design stages are expected to take about 16 months: four months for concept design, six for preliminary design and six for issued-for-construction design, each with four weeks of contingency.

    SAR has asked bidders to mobilise a core team from day one. These must include a project director, engineering and design manager, stakeholder manager and lead document controller, all based at SAR's offices, with minimum experience thresholds ranging from three years for junior operators up to 25 years, including 15 in rail, for the project director role.

    GCC railway line

    Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to cover about 2,186km in total.

    The route length within each member state is as follows:

    • UAE – 684km
    • Saudi Arabia – 672km
    • Oman – 306km
    • Qatar – 283km
    • Kuwait – 145km
    • Bahrain – 36km

    The railway is designed for passenger trains travelling at 220 kilometres an hour (km/h) and freight trains operating at 80km/h–120km/h.

    With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19783331/main.gif
    Yasir Iqbal
  • Tender issued for Libyan gas project

    17 September 2026

    An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.

    The bid submission deadline is 2pm today (17 September) Libyan time.

    The scope of the project includes provision of:

    • An environmental baseline study (EBS)
    • An environmental impact assessment (EIA)
    • An environmental management plan (EMP)

    The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).

    MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.

    The joint venture owns and operates six major oil and gas fields across the North African country.

    According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:

    • Libyan environmental legislation
    • Ministry of Environment requirements
    • NOC environmental guidelines
    • Applicable international environmental standards and best practices

    The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.

    The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

    It has six main packages:

    • Onshore package
    • Offshore Structure A
    • Offshore Structure E
    • Subsea pipeline package
    • Site preparation work
    • Carbon capture and storage facility

    Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.

    Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.

    The existing onshore complex includes housing, processing units, storage facilities and export facilities.

    It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.

    The planned expansion of the complex will involve:

    • Construction of a new fourth gas processing train
    • Construction of a third condensate train
    • Construction of a third natural gas liquids fractionation train
    • Construction of a fourth sulphur recovery unit train
    • Installation of a hydrogen sulphide enrichment unit
    • Installation of a sulphur recovery unit
    • Construction of other associated facilities

    The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19748920/main.png
    Wil Crisp
  • Nakheel awards $218m Dubai Islands buildings deal

    17 September 2026

    Register for MEED’s 14-day trial access 

    Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands.

    The contract was awarded to the local firm Metac General Contracting Company.

    It covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings.

    Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

    The works are scheduled for completion in late 2028.

    Bay Grove Residences will ultimately comprise 1,154 homes across 15 buildings. Planning is under way for the remaining 617 homes in phases two and four, with further contract awards expected.

    In August last year, Nakheel awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands. The contract includes constructing 636 villas.

    In April this year, another AED527m ($143m) contract was awarded to local firm Al-Nasr Contracting Company to construct the primary infrastructure and utilities works on Island B at the development.

    The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features more than 59 kilometres (km) of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

    The offshore island project gained renewed momentum in 2022, when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

    The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19748850/main.jpg
    Yasir Iqbal
  • Aldar and Mubadala acquire Masdar City Square

    17 September 2026

    Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and local developer Aldar have completed the acquisition of Masdar City Square at Masdar City, in a transaction valued at AED918m ($250m).

    The deal was executed through their joint venture established in 2024.

    Masdar City Square comprises more than 47,000 square metres (sq m) of net leasable area across seven office buildings.

    Completed in Q1 2026, the development is 99% occupied. Tenants include Taqa, the Department of Energy, Emirates College and the Mohamed Bin Zayed University of Artificial Intelligence.

    The transaction expands the joint venture’s real estate portfolio in Masdar City, which is now valued at AED4.7bn ($1.3bn).

    Masdar City is one of the region’s leading hubs for clean energy, artificial intelligence, advanced research and sustainable urban development.

    The joint venture acquired The Link project at Masdar City for AED654m ($178m) in April.

    Comprising about 32,000 sq m of net leasable area across five buildings, The Link is fully leased to a portfolio of major tenants, including Abu Dhabi Future Energy Company (Masdar) and the Mohamed Bin Zayed University of Artificial Intelligence.

    The asset includes Grade A, Leed Platinum office space, a net-zero-energy headquarters building, a multi-use hall and residential accommodation, supporting its position as a high-performing, integrated component of Masdar City.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19748241/main5814.png
    Yasir Iqbal
  • Neom tenders Oxagon highway contract

    17 September 2026

     

    Saudi Arabia’s Neom has tendered a design-and-build contract covering permanent upgrade works on Highway 55 in the kingdom’s Oxagon region.

    The first phase of the project includes constructing 14 kilometres of road, with two lanes in each direction. It also covers one bridge and three interchanges.

    The project duration is 22 months.

    Contractors have been given until 21 September to submit their proposals.

    Highway 55 connects the Red Sea coast with the mainland in northwestern Saudi Arabia. It is currently the only road providing north-south connectivity between Duba and the Neom region.

    MEED exclusively reported in August 2025 that contractors had submitted responses to the expressions of interest notice that Neom had issued earlier that month.

    The project is expected to support the movement of cargo vehicles from Duba Port to other parts of the country and the wider region.

    Neom tested a pilot initiative last year by handling a shipment that travelled from Cairo via the Port of Safaga, across the Red Sea to the Port of Neom, and then inland to Erbil, Iraq.

    In a statement, Neom said: “The shipment travelled through an intermodal corridor spanning over 900 kilometres, marking a significant milestone in the kingdom’s transformation into a regional and global logistics hub.”

    The Port of Neom is located on the Red Sea near the Arar border, a key entry point into Iraq.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19746896/main.gif
    Yasir Iqbal