Gov't Approves Gas Distributor Acquisition Under Strict Competition Conditions

(MENAFN- Jordan Times) AMMAN - Afaq Energy has received conditional government approval to acquire full ownership of Advanced Central Gas LLC, a liquefied petroleum gas (LPG) distributor, subject to measures aimed at safeguarding competition in the market.

Minister of Industry, Trade and Supply Yarub Qudah issued Decision No. 3 of 2026 following a recommendation by the director general of the Competition Protection Department and a review that identified potential risks to competition in the centralised LPG distribution market, the Jordan News Agency, Petra, reported.

The review found that the acquisition could put small and medium-sized enterprises (SMEs) at a disadvantage or discourage new market entrants if Afaq Energy used its market power and financial resources to offer extended payment terms, indirect discounts or free infrastructure installation.

However, the review noted that the market is regulated by the Energy and Minerals Regulatory Commission and that LPG prices are determined by an official pricing formula, limiting the potential impact of the acquisition on consumers through price changes.

To address these concerns, the approval is subject to a set of regulatory, structural and behavioural conditions that the companies involved have committed to implementing.

Under the conditions, the companies are prohibited from offering customers payment terms exceeding 30 days or providing direct or indirect discounts on gas supply prices.

They are also barred from replacing competitors' gas distribution networks free of charge or installing networks for micro and small enterprises in exchange for exclusive supply agreements.

The decision also requires a complete administrative and marketing separation between centralised gas distribution companies owned by Afaq Energy, prohibiting the use of one company's assets or resources for the benefit of another.

It further prohibits deliberate workforce reductions and requires employees' rights to be protected.

The Competition Protection Department warned that any breach of these commitments would automatically invalidate the approval, require the acquisition to be reversed and the previous situation restored, and trigger the fines prescribed by law.

Under Competition Law No. 33 of 2004, as amended, economic concentration transactions require written ministerial approval if the annual domestic revenue of any participating company exceeds JD10 million or their combined annual revenue exceeds JD30 million.

The department stressed that completing a transaction that meets these thresholds without written approval constitutes a violation, invalidating all related actions and requiring the previous situation to be restored.

Such violations carry fines ranging from JD10,000 to JD50,000, with offenders referred to the public prosecutor in cases of non-compliance, Petra reported.

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