Watani Company Signs Strategic Agreement To Supply Natural Gas To Qatrana Cement

Amman, Aug. 27 (Petra)-- Minister of Energy and Mineral Resources Saleh Kharabsheh on Thursday witnessed the signing of a strategic agreement between the National Advanced Natural Gas Company (Watani) and Qatrana Cement Company to supply and distribute natural gas to the Qatrana Cement plant, as part of efforts to expand the use of natural gas in the industrial sector and provide more efficient and reliable energy solutions.

The agreement was signed by Watani Director General Khaled Al-Zoubi and Qatrana Cement CEO Amer Al-Khatib.

Kharabsheh said the agreement comes as part of the ministry's efforts to diversify energy sources, enhance energy security, support the national economy and industrial sector, and advance the objectives of the Economic Modernization Vision.

He said the ministry is working to expand the natural gas network to cover various industrial areas. The network currently extends to Al-Qastal and Al-Hashemiyah, while agreements have been signed to supply natural gas to Al-Rawdah in Ma'an and Al-Muwaqqar. Studies are also being prepared to extend the network to Mafraq and Zarqa.

Kharabsheh also highlighted continued efforts to explore energy resources and develop solutions aimed at reducing reliance on conventional energy sources. He noted that Jordanian companies now cover various stages of the natural gas supply chain.

Al-Zoubi said the agreement represents more than a conventional commercial relationship between a supplier and a consumer, describing it as a "strategic partnership" that reflects Watani's commitment to providing reliable supplies and integrated solutions for the industrial sector.

Al-Khatib said the project to transition to natural gas is a strategic decision aimed at improving operational efficiency, diversifying energy sources and reducing costs, thereby ensuring the long-term sustainability of the company's operations.

Ziad Al-Saaydeh, Chairman of the Board of Commissioners of the Energy and Minerals Regulatory Commission, said the commission supports projects aimed at switching to natural gas by providing the necessary regulatory and technical framework and ensuring safety and efficiency requirements. He added that such projects enhance energy security and strengthen the competitiveness of the industrial sector.

Under the agreement, Watani will supply the plant with compressed natural gas (CNG) in accordance with agreed specifications, quantities and delivery schedules, as well as applicable regulatory and technical requirements. The gas will be used primarily for electricity generation and industrial heating processes.

The plant's annual natural gas requirements are expected to range between 450,000 and 700,000 million British thermal units (MMBTU) during the first phase, with consumption gradually increasing in the coming years to cover most of the plant's energy needs.

Actual gas supplies are scheduled to begin in early 2027 following the completion of technical works and infrastructure, as well as the required approvals and licenses.

The agreement includes the establishment of an integrated gas reception system at the plant, including gas storage tanks, pressure reduction equipment, metering systems and other necessary technical equipment. The gas will be transported in sealed tanks mounted on mobile trailers.

The agreement will remain in effect for five years from the date of the first successful gas delivery and will be automatically renewed for an equivalent period in accordance with its terms. Approvals related to the gas reception station, engineering designs, infrastructure works, safety requirements and inspections are also being completed.

//Petra// MF

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