Jordan attracts international and local firms for gas pipeline project

Nov 13, 2001 01:00 AM

Jordan is attracting international and local firms to submit proposals for the construction of its gas transmission pipeline project, a senior official at the Ministry of Energy and Mineral Resources said. "The project will enable the Kingdom to cope with the natural gas requirements of the country for 30 years," said Minister of Energy Mohammad Batayneh.

The ministry issued request for proposal (RFP) documents on Oct. 1 for the construction of the 370 km pipeline, from the delivery point in Aqaba to the central and northern part of Jordan, to supply gas to the combined cycle power generation plants (Rehab and Samra stations) and large industrial consumers in Jordan.
"The RFP documents included the description of the project and its structure, the incentives provided by the government and the licence agreement stating the government commitments toward the project," said the minister in a pre-bid meeting for the project in which around 35 local and international firms participated. "Our discussion will help in clarifying any aspect related to the project in order to enable you [the firms] to submit proposals," said Batayneh, adding that the meeting comes as an intermediate activity between issuing the RFP documents and the bidding date for Jordan's gas transmission pipeline project.

According to a state official, the government is expected to receive the bidders' offers before the end of the year. The long-awaited agreement for the sale and transportation of gas was signed between Jordan and Egypt on June 5.
The Kingdom will be provided with gas through an overland pipeline which starts at Al Arish and ends at Taba on the Egyptian side, and then through a maritime line that links Taba with Aqaba. The demand for energy in Jordan has been growing at an average rate of 4 % annually over the past ten years and is expected to continue to grow at an average rate of 3 % within the next decade.
"The lack of domestic energy resources has been a serious challenge to the economy of Jordan," said Batayneh.

Risha gas field, which was discovered in 1987, is currently the only source of hydrocarbon fuel in Jordan and it contributes 12 % of the total generation energy. The cost of imported energy is almost equal to about 10 % of the gross domestic product and about 40-45 % of the country's total export earnings.

Source: Jordan Times
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