President of the Jordan Chamber of Industry, Engineer Fathi Al-Jaghbir, affirmed that the project to supply factories with natural gas is one of the most prominent strategic initiatives within the second executive program of the Economic Modernization Vision, due to its direct impact on enhancing the competitiveness of Jordanian industry and supporting its sustainable growth.
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Al-Jaghbir told the Jordan News Agency (Petra) that reliance on natural gas provides a more efficient and lower-cost alternative compared with traditional fuels such as diesel and heavy fuel oil, contributing to reduced production costs and increased competitiveness of factories.
He added that the importance of the project is amplified by the fact that Amman and Zarqa represent the industrial heart of the Kingdom, accounting for about 60 percent of total industrial establishments. This makes any development of energy infrastructure in these cities directly impactful on national production.
He noted that the project helps improve the investment environment in Jordan, as the availability of natural gas is one of the main factors investors consider when selecting industrial locations. It also meets the growing demand for industrial energy across various energy-intensive sectors, including chemical, petrochemical, plastic, rubber, construction, food industries, and carpet and carpet-tile manufacturing.
Al-Jaghbir pointed out that the project aligns with the national orientation toward a green economy by reducing carbon emissions and improving the sustainability of factory operations, enhancing compliance with international environmental commitments and increasing Jordan’s ability to attract modern industrial investments.
He explained that the natural gas project plays a vital role in reducing production and operating costs within factories. Studies indicate that switching from diesel and heavy fuel oil to natural gas can achieve savings ranging between 35 and 50 percent in energy costs, depending on the type of fuel used and the industrial sector. This is due to the high combustion efficiency of natural gas, which reduces carbon residue buildup in machinery and equipment, lowers maintenance costs, and extends equipment lifespan.
He also noted that the project reduces energy waste, improves production continuity, and lowers environmental emissions, strengthening compliance with global environmental standards and making factories more competitive in local, regional, and international markets.
Al-Jaghbir stressed that reducing energy costs is one of the most important factors in improving the competitiveness of Jordanian industry, as energy costs account for approximately 30–35 percent of total production costs, and may exceed 40 percent in certain sectors such as plastics, rubber, and construction industries.
He added that the use of natural gas improves factory profitability, narrows the production cost gap with competitors in neighboring countries, and enables factories to enhance product quality and raise levels of industrial innovation.
He confirmed that the previous phase of the project saw several factories benefit from natural gas connections, with a noticeable improvement in operational efficiency alongside reduced energy and maintenance costs. This was positively reflected in product quality and increased production capacity.
He noted that major facilities have benefited from these transformations, such as the Jordan Phosphate Mines Company complex in Aqaba, which consumes about 4 million cubic feet per day, and the National Chlorine Company, which is supplied with gas from the Risha field at a rate of 3–4 million cubic feet per day.
Al-Jaghbir explained that some industrial facilities in cities reached by natural gas pipelines, or those contracting licensed companies to supply compressed natural gas, have begun studying optimal supply methods and associated costs to ensure maximum benefit from natural gas as an energy source. These include construction, mining, chemical industries, some food sectors, and carpet and carpet-tile manufacturing.
According to Al-Jaghbir, experience shows that the transition to natural gas has contributed to improved operational stability, increased production capacity, reduced energy consumption, and enhanced compliance with environmental standards, reflecting the project’s impact on strengthening the competitiveness of Jordanian industries locally and regionally.
He noted that recent years have witnessed an expansion in delivering natural gas to strategic industrial cities and areas in Jordan, with several industrial facilities being supplied with this vital energy source to enhance production efficiency and reduce operating costs.
Engineer Al-Jaghbir listed the areas that have been supplied with natural gas, including the Quweira Industrial Zone in Aqaba in partnership with Egypt; Mafraq Development City, for which the Ministry of Energy has begun preparing initial designs for gas delivery; King Abdullah II Ibn Al Hussein Industrial City in Amman; Aqaba International Industrial Estate within the Aqaba Special Economic Zone; in addition to the inauguration of the compressed natural gas station in the Risha area—the first of its kind in the Kingdom—to supply national industries in areas not reached by conventional networks.
He emphasized that energy plays a fundamental role in the production processes of Jordan’s industrial sector, with energy costs forming a key factor in determining factory competitiveness and their ability to reduce costs and improve product quality.
He reiterated that energy costs in most industrial sectors amount to around 30–35 percent of total production costs, exceeding 40 percent in energy-intensive industries such as plastics, rubber, and construction.
Al-Jaghbir pointed out that natural gas is an effective alternative for reducing energy costs, as it features higher combustion efficiency compared with diesel and heavy fuel oil, reducing waste, improving production stability, and lowering maintenance costs associated with carbon residue accumulation in equipment and machinery.
He concluded by noting that the transition to natural gas contributes to reducing carbon emissions by 20–40 percent, increasing energy efficiency by up to about 60 percent compared with diesel and about 27 percent compared with heavy fuel oil. This enhances the sustainability of industrial operations and enables factories to better meet international energy and clean production standards, while also improving the competitiveness of Jordanian products locally and internationally. (Petra)
