AMMAN — During the
Jordanian-Iraqi Business and Financial Forum, the chief executive officer of the
Jordan Petroleum Refinery Company (JoPetrol), Abdulkarim Alaween, confirmed on Tuesday that the fourth expansion
project will enable the refinery to refine 120,000 barrels of light Arab crude
oil per day.
اضافة اعلان
Alaween explained that the project aims to improve the
quality of products in line with the latest Jordanian and European
specifications to meet vehicle emission standards (Euro 5/V and Euro 6/VI).
Additionally, the project seeks to enhance energy efficiency
and reduce greenhouse gas emissions, as required by the Ministry of
Environment, the International Finance Corporation, and the Equator Principles.
The expansion project aims to improve
air quality surrounding the refinery and throughout the Kingdom. It also focuses on
enhancing water management, conservation, treatment, and recycling.
Moreover, the project aims to transition from using fuel oil
to natural gas in refining furnaces and steam boilers.
Generating high-efficiency electricity, producing hydrogen
The project intends to generate
high-efficiency electricity through a combined cycle power station using natural gas.
It will also produce hydrogen from natural gas. Furthermore,
the project aims to meet the Kingdom's demand for high-quality petroleum
products at competitive prices.
It seeks to improve the environmental performance and energy
efficiency of the existing refining units that will be retained after the
expansion. Additionally, the project aims to convert heavy sulfur fuel oil into
lighter high-value products such as diesel, gasoline, and
aviation fuel.
Economic benefits
The CEO highlighted the economic benefits of the project,
including the execution of work by local contractors. It is expected that the
peak monthly direct employment during the project implementation phase will
reach 6,500 job opportunities, with an average monthly direct employment of
5,000 opportunities.
Furthermore, the project will source quantities of materials
from the local market, boosting the
local economy.
Alaween reviewed the main stages of the project, including
completed works and market research to determine requirements.
The project has selected refining technologies and licensed
technology providers, and has prepared basic engineering design documents by
refinery technology licensors. The Spanish company Tecnicas Reunidas has
prepared the basic engineering design documents, while the Bankable Feasibility
Study was also conducted by Tecnicas Reunidas.
The project's advisors include the financial advisor (SCB
Bank)/Dubai branch, the international legal advisor (Freshfields), the
environmental advisor ECO & WKC, the insurance advisor AON, and the project
management advisor (Technip).
Progress towards financial closure
Alaween mentioned that the investor package documents and
bid documents for the design, supply, execution, and financing (EPCF) of the
fourth expansion project have been prepared. Prequalification of EPCF
coalitions has taken place, and the preferred coalition for the project has
been selected.
Financial closure activities involve discussions with the
preferred coalition regarding tax and customs exemptions, negotiations with
investors, and negotiations with
Export Credit Agencies (ECAs) in cooperation
with the preferred coalition and their consultants for due diligence.
The activities, including due diligence for various aspects
of the project, are expected to be completed in the last quarter of the current
year.
According to Alaween, the Jordan Petroleum Refinery
previously implemented three expansions between 1960 and 1983 to increase the
refining capacity to 60,000 barrels per day.
In 2013, after opening the market for petroleum products in
Jordan for competition, the company established a subsidiary called JoPetrol to
serve as its marketing arm in the local market. JoPetrol currently holds the
first position in the Jordanian transportation fuel market, with a volume of 30
million barrels per year.
The refinery also owns two other subsidiaries involved in
the liquefied petroleum gas business and mineral oil production and marketing.
The authorized and paid-up capital of the Jordan Petroleum
Refinery Company is JD100 million (100 million shares at JD1 per share). Its
net profit after tax was JD105 million last year, compared to JD52 million in
2021.
The Jordan Petroleum Refinery Company, founded in 1956, is a
public joint-stock company and owns the only refinery in Jordan. It began
production in 1960 with a modest refining capacity of 7,500 barrels per day.
Read more Business
Jordan News
.jpg)
.jpg)
