AMMAN — Jordan's
Ministry of Investment has unveiled
multiple investment opportunities on the newly launched "
Invest in Jordan" platform. Among these prospects is a project focused on
establishing a gas distribution network aimed at providing cost-effective gas
supplies in Amman and Zarqa. This initiative aims to counterbalance the recent
fuel price increases.
اضافة اعلان
The project entails the construction of a 61km main pipeline
network, connecting to the "source" and "sink" networks.
The network will provide natural gas to residential, commercial, hotel, light
industry, and
transportation sectors in both cities, Hala News reported.
A transition to natural gas
According to the platform, the estimated investment size for
this project is $537 million, with an anticipated internal rate of return of 16
percent. The platform emphasizes the added value of the project, highlighting
the environmentally friendly nature of natural gas compared to oil-derived energy
sources.
It is expected to
reduce energy costs when compared to liquefied petroleum gas, heating gas, and
diesel, even with subsidies. This transition to natural gas is seen as a driver
for
comprehensive economic growth.
The benefits of the project are manifold. It will offer
consumers a low-cost alternative to liquid fuels, encourage the use of natural
gas in various sectors to reduce reliance on heavy fuels, and subsequently
decrease harmful carbon dioxide emissions. Furthermore, it is expected to enhance
industrial competitiveness by lowering production costs.
The project leverages the expertise and resources of the
private sector for the design, implementation, operation, and maintenance of
the network facilities. It also aims to develop the commercial
natural gas market, including training gas engineers to acquire new skills. This venture
creates investment opportunities for Jordanian companies and investors while
generating employment prospects.
The project components encompass a strategically located
station between Amman and Zarqa, a high-pressure stainless-steel network for
light and small industries, and a polyethylene network for
heavy and large industries. Additionally, a polyethylene network will serve residential
projects, accompanied by household pipelines, meters, and regulators for
household appliances.
Under a long-term lease contract, the investor will be
responsible for designing, constructing, financing, operating, and maintaining
the gas network. Eventually, ownership will be transferred to the public sector
after the lease term concludes.
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