meed-logo

line1 line2 line3
SIGN IN / REGISTER

Jordan sustains utility infrastructure progress

6 June 2023

This package on Jordan’s power and water sector also includes:

> Jordan extends $2bn water scheme bid deadline
> Masdar inaugurates 200MW Jordan solar plant
> Jordan signs Ghabawi wastewater plant deal
> Jordan signs $99m solar funding

 

Jordan reached a new level of electricity peak load on the evening of 1 February, recorded at 4,060MW by state utility National Electric Power Company (Nepco).

This was slightly higher than the previous peak registered in January 2022 of 4,010MW.

With a total generation installed capacity of over 6,400MW, the kingdom is comfortable dealing with such demand peaks.

However, with the share of total generation capacity accounted for by solar and wind sources estimated at a substantial 2,371MW, Jordan could benefit from battery energy storage systems (BESS), as well as grid interconnection with its neighbours. 

As it is, Iraq stands to benefit from Jordan’s substantial production surplus, with construction reaching the final stage for the Jordan-Iraq electricity interconnection project.

US-based GE is implementing the project. It comprises a 288-kilometre overhead line from Jordan to Iraq’s Qaim area.

Another project to connect the electricity grid of Jordan to Saudi Arabia is in the tendering process. The estimated $1bn package is expected to enable the daily exchange of 500MW of electricity in its initial phase and up to 1,000MW in a later phase. 

Region plans vital big grid connections

Renewable energy lead

Jordan is anticipated to sustain its renewable energy leadership in the Middle East and North Africa (Mena) region.  

In February this year, Baynouna Solar Energy Company (BSCE) formally inaugurated the 200MW Baynouna solar park. BSCE is a joint venture of the UAE-based clean energy firm Masdar and the Finnish investment and asset management group Taaleri.

The project is Masdar’s second renewable energy asset in Jordan after the 117MW Tafila wind farm, which was completed in 2015.

The inauguration came on the heels of the signing in November 2022 of a memorandum of understanding (MoU) between Masdar and the Jordanian Energy & Mineral Resources Ministry (MEMR) to explore the development of a further 2GW of renewable energy projects in the country.

In addition to utility-scale power and wind projects, Jordan is also making progress with its small-scale solar distribution network.

In February this year, Amman-based Future Sun Renewable Energy Systems and Safwa Islamic finalised a loan agreement for a JD70m ($98.7m) project to install solar power plants at industrial enterprises.

The bank agreed to provide Future Sun with JD70m to fund a 100MW solar power project at 84 industrial enterprises that are Future Sun shareholders. The project is expected to cut electricity costs by JD15m, and each beneficiary will have a solar PV system with a maximum capacity of 2MW.

Water projects

There are growing opportunities for water infrastructure contractors in Jordan as well. A 200MW hydropower plant in Al-Mujib and a water desalination conveyance system in Hisban are planned. The Water Authority of Jordan (WAJ) is planning several wastewater collection and network projects and a desalination plant.

In February, the Water & Irrigation Ministry and the local firm Arab Towers Contracting Company signed an agreement worth €79.5m ($84.7m) to design and implement a wastewater treatment plant in the Ghabawi region.

The European Bank for Reconstruction & Development (EBRD) will provide a €41.3m loan, while the EU has agreed to provide a €30m grant for the project.

Engicon and CDM Smith Europe have signed a $1.2m supervision contract for the project, funded by an EBRD grant.

Under the two agreements, the water authority will build a treatment plant with a capacity of 24,750 cubic metres a day, with sewage tanks instead of the primary type of treatment plant equipment in the Ain Ghazal region.

The project will help to improve the area’s environmental conditions and reduce the biological load on the Khirbet Samra treatment plant.

The country’s largest, single water infrastructure project to date continues to face delays, however. Tendered in March 2022, bids are due this month for the estimated $2bn Aqaba-Amman water desalination and conveyance project.

The build-operate-transfer (BOT) project will pipe water from the southern coast to the country’s northern regions.

The first phase will involve the construction of 280,000 cubic metres a day (cm/d) of capacity for desalination and 80,000 cm/d of groundwater. A planned second phase will raise the plant’s overall production to 600,000 cm/d.

The conveyance segment of the project includes the construction of a seawater intake pump station, reservoir, pipeline, booster pump stations and freshwater collection pipes.

The project is expected to use clean energy in line with the government’s commitment to reduce greenhouse gas emissions.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10909813/main.jpg
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai extends deadlines for stormwater drainage projects

    1 September 2026

     

    Dubai Municipality has extended bid submission deadlines for three tenders linked to stormwater and sewerage infrastructure projects serving Hind City, Dubailand and surrounding areas.

    The projects (DS-316-C1, TF-24-C1 and TF-25-C1) cover drainage networks for Hind 4, connections to the stormwater network in Dubailand and a stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman.

    The new bid submission deadline is 24 September. Bids were originally due on 10 September.

    The municipality’s Sewerage and Recycled Water Projects Department issued the tenders in August. Hind 3 and Hind 4 are two of four zones within Hind City. The Dubai government renamed the Al-Minhad area and surrounding areas as Hind City in 2023. The 83.9-square-kilometre area is served by Emirates Road, Dubai-Al-Ain Road and Jebel Ali-Lehbab Road.

    The DS-316-C1 project covers the construction of sewer and stormwater networks in Hind 4. The stormwater network will include gravity drainage pipelines up to 1,600 millimetres (mm) in diameter, while the sewer network will include pipelines up to 800mm.

    The TF-24-C1 project will connect developers’ areas in Dubailand to the stormwater network. It includes 18 kilometres (km) of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.

    The TF-25-C1 project involves the construction of a 9.2km stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman. The trunk line will include gravity drainage pipelines with diameters of up to 2,800mm. It will also serve main roads along its alignment, including sections of the Dubai-Al-Ain Road, and is designed to accommodate stormwater flows from part of Emirates Road.

    The latest tenders follow a series of recent Tasreef package awards by Dubai Municipality.

    In July, MEED reported that local contractor DeTech Contracting had won the estimated $100m TF-15-C1 EPC contract. The municipality has also awarded the TF-15-C2 and DS-204-C1 packages to China State Construction Engineering Corporation and Nael Construction & Contracting.

    The wider Tasreef programme is intended to increase Dubai’s rainwater drainage capacity by 700% by 2033 and provide capacity for the emirate’s needs for the next 100 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19220861/main.jpg
    Mark Dowdall
  • Saudi Arabia redirects towards AI

    1 September 2026

    Commentary
    Colin Foreman
    Editor

    The groundbreaking by Humain and DataVolt at Oxagon this month signals where Saudi Arabia’s project spending is heading.

    Over the past year, the dominant story has been reprioritisation, following Neom’s loss of the Asian Winter Games and the cancellation of contracts at Trojena and The Line. While the negative headlines have attracted international attention, it is important to remember that spending has not stopped. Instead, it has changed course, and artificial intelligence (AI) and the new economy are increasingly where it is going.

    The old economy still has a role to play. Over the next eight years, Expo 2030 and the 2034 Fifa World Cup will keep the construction market busy. Looking further ahead, however, the longer-term opportunity lies elsewhere. AI and the wider new economy could sustain a pipeline of construction work that outlasts the events – from data centres and their power supply to the industrial and digital infrastructure that surrounds them.

    Saudi Arabia also has a comparative advantage. Aiman Al‑Mudaifer, Neom’s chief executive, said at Leap that the ability to secure power, land and connectivity was becoming critical to the economics of AI computing capacity. The kingdom has cheap energy, coastline, sovereign capital and, at Oxagon, subsea cables linking to Europe and Africa.

    The build-out is gathering pace. Humain, the PIF-owned AI company launched in May 2025, has struck deals with US chipmakers AMD and Nvidia, attracted interest from Aramco and tendered a separate 6GW campus in east Riyadh. The Oxagon campus is planned to reach 1.5GW, with the first 100MW due in 2028. For contractors and consultants, this points to demand for power distribution, substations, cooling and connectivity rather than stadiums and mountain resorts.

    Whether it pays off is far from settled. Data centre economics depend on customers, chips and reliable power, and Saudi Arabia is a late entrant to a crowded field.

    For construction, the transition will be uneven, and some parts of the projects market will feel the redeployment before they feel the benefit. But for a market that has spent a year dealing with the impact of cancelled contracts and project slowdowns, a clearer sense of where the money is going next is a positive sign.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19222074/main.jpg
    Colin Foreman
  • Petrojet signs Jordan gas pipeline contract

    1 September 2026

    Egypt’s Petrojet has signed a new contract to deliver a natural gas pipeline project in Jordan, according to a statement from the company.

    The pipeline network will connect the Al-Muwaqqar Industrial Development Zone, south of Amman, to Jordan’s natural gas network.

    The contract was signed by Saleh Al-Kharabsheh, Jordan’s minister of energy and mineral resources, and Walid Lotfy, the chairman of Petrojet.

    The project covers the engineering, procurement, construction and installation of approximately 22 kilometres of natural gas pipelines, including connection to the Arab Gas Pipeline.

    It also includes developing gas pressure reduction and metering stations, as well as a pig launcher and receiver facility.

    The contract has an 18-month execution period.

    In its statement, Petrojet said the project would further strengthen its international portfolio and demonstrate its engineering, construction and project-execution capabilities across regional and global markets.

    The invitation to bid on the project was issued in June this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19219983/main.jpg
    Wil Crisp
  • Kuwait sets fresh bid deadline for $240m oil project

    1 September 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has announced a new bid deadline for the planned project to upgrade gas booster stations 140 and 150 (BS-140 and BS-150).

    The new bid deadline is on 20 September 2026.

    This replaces a previous bid deadline scheduled for 23 August 2026.

    The project, first announced in 2014, is estimated to be worth $240m, and the invitation to bid was issued in May this year.

    The scope of work on the project covers:

    • Upgrade of BS-140 and BS-150
    • Replacement of dehydration facilities
    • Laying of pipelines
    • Installation of safety system
    • Construction of associated facilities

    It was announced in 2017 that the following companies had been prequalified to bid for the project:

    • Daelim Industrial (South Korea)
    • Daewoo Engineering & Construction (South Korea)
    • Fluor (US)
    • Hyundai Heavy Industries (South Korea)
    • JGC Corporation (Japan)
    • Kellogg Brown & Root (US)
    • Larsen & Toubro Hydrocarbon Engineering (India)
    • National Petroleum Construction Company (UAE)
    • Petrofac (UK)
    • Saipem (Italy)
    • Samsung Engineering (South Korea)
    • SK E&C (South Korea)
    • Kentech (UAE; formerly SNC-Lavalin)
    • Technip Energies (France)
    • Tecnicas Reunidas (Spain)

    The list of prequalified companies has likely changed significantly since the previous list was published.

    Kuwait’s oil and gas sector is currently in the midst of a major crisis as disruption to shipping through the Strait of Hormuz has dramatically reduced the volume of exported crude oil.

    The disruption is also creating significant challenges for construction projects in the oil and gas sector, which normally import equipment and materials through the Strait of Hormuz.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19219867/main.jpg
    Wil Crisp
  • Libyan company secures upstream oil project

    1 September 2026

     

    Libya’s BaderOya Oilfield Services & Energy has been awarded a contract to hook up six wells to an early production facility (EPF) at the Erawin field.

    Engineering contractor Petrofac previously handled the scope of this project. However, Petrofac stopped work before completing the full scope.

    The outstanding work accounted for about 2%-3% of the overall project, according to industry sources.

    The client for the six-well hook-up contract is Zallaf Libya Oil & Gas Exploration & Production Company, which was established in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation (NOC).

    In March this year, MEED reported that Petrofac had stopped work on the EPF development project and reduced its Libyan workforce.

    The scope of the original contract awarded by Zallaf to Petrofac included surface facilities at the Erawin oil field, such as well pads and flowlines. It also included a pipeline to transport crude oil about 100 kilometres (km) to the El-Sharara oil field, plus a control room, substation and telecoms system located there.

    Petrofac completed several elements of the original scope, including the pipeline infrastructure, which has been in operation for more than a year, according to the company.

    Zallaf awarded the Erawin EPF contract to Petrofac under an engineering, procurement, construction and commissioning model. In a 2021 statement, Petrofac said the contract was valued at more than $100m, but did not provide a precise figure. The regional project-tracking service MEED Projects has estimated the contract value at $440m.

    Petrofac did not respond to a request for comment on the award of the well hook-up contract to BaderOya Oilfield Services & Energy.

    Financial problems

    On 27 October last year, Petrofac announced that it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.

    At the time, the total value of projects awarded to Petrofac and under construction in the region was $5.83bn, according to information recorded by MEED Projects.

    Petrofac also had bids under evaluation for 15 projects in the region worth a total of $19.28bn.

    Since then, key parts of the business have been sold off, and many of the company’s staff have been made redundant.

    The redundancies included around 180 employees who were issued termination notices in October last year.

    In December, the US-based company CB&I announced it had entered into a deal to buy Petrofac’s asset solutions business in the first quarter of 2026.

    In January this year, the proposed company voluntary arrangement related to the sale of its Asset Solutions business was approved.

    Also this year, Petrofac completed the sale of Petrofac Emirates, a business unit it established in Abu Dhabi in 2008.

    The unit was bought by a consortium of financial investors led by the New York-headquartered hedge fund Mason Capital Management and UK-based asset management firm Pearlstone Alternative.

    Project disruption

    After the sale of Petrofac’s asset solutions to CB&I, the US-based company adopted responsibility for close-out works for the Erawin EPF project, according to an industry source.

    This was because the project “fell within an entity that was moving as part of the CB&I sale”, the source said.

    CB&I and Petrofac declined to comment on recent developments relating to the Erawin EPF project and the contract awarded to JOS.

    Erawin exports

    Libya shipped its first cargo of crude from the Erawin oil field in November 2023.

    The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.

    Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the EPF project in 2019.

    The Erawin field development project is located about 800km south of Tripoli and 100km southwest of the El-Sharara field.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19219414/main.jpg
    Wil Crisp