Jordan to build gasification plant in Aqaba port to secure electricity supply
A consortium led by Singapore’s Atlantic Gulf & Pacific (AG&P) has won a contract to construct an onshore liquefied natural gas (LNG) terminal in Jordan, according to a statement from the company.
The terminal, named Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah Onshore LNG Terminal, will be located at the Port of Aqaba in southern Jordan and will have a regasification capacity of 720 million standard cubic feet per day.
Regasification is the process of converting LNG back into its natural gaseous state for use in power generation. This process has become known as a flexible, quick-to-deploy, and economically viable technology for generating electricity.
Operational Timeline
AG&P stated in a press release on Wednesday evening that the terminal is expected to be completed, operational, and handed over within 22 months, with operations slated to begin by the second quarter of 2026.
The company highlighted, “Jordan relies heavily on natural gas to meet its electricity and industrial needs, but it faces challenges regarding supply reliability. The new LNG terminal will provide Jordan with the flexibility to access LNG from various global suppliers, ensuring a stable and secure energy source.”
Consortium and Contract
The consortium comprises AG&P, its subsidiary Gas Entec, and Jordan-based Issa Haddadin Construction. The contract was awarded to the consortium by Aqaba Development Corporation (ADC), a state-owned infrastructure development entity.
Project Agreement
On Monday, ADC and the global consortium signed an agreement to develop the Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah LNG Terminal in Aqaba at a cost of $125 million, as reported by the official Jordan News Agency (Petra).
The agreement includes the construction of an onshore conversion unit, in addition to upgrading the existing LNG port facilities.
Strategic Importance
Jordan’s objective with this project is to maintain the option of importing LNG for power generation and industrial use as a strategic alternative in case of disruptions in current supply sources, thereby achieving cost savings in electricity production.
The Aqaba Development Corporation originally established the Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah LNG Terminal in 2015. The terminal includes facilities for LNG import, a floating storage, and regasification unit (FSRU) to store LNG and convert it back into its gaseous state, providing a contingency option against supply interruptions or insufficiencies in natural gas supply.
