Jordan inaugurates Abu Dhabi-backed $771m petroleum storage facility

The project is financed through the UAE's $1.25bn funding commitment for Jordan

Investor rating agency Fitch assigns "BB-" to Jordan's long-term foreign currency issuer default rating. EPA
Investor rating agency Fitch assigns "BB-" to Jordan's long-term foreign currency issuer default rating. EPA

Jordan on Thursday officially inaugurated an Abu Dhabi Fund for Development backed Dh771 million strategic petroleum reserve project as the kingdom continues to strive for energy self-sufficiency.

The scheme, with holding capacity of 356,000 tonnes, can maintain petroleum products sufficient for 60 days of domestic consumption in Jordan, according to the country’s energy and mineral resources minister Hala Zawati.

The project, funded as part for $5 billion (Dh18.4bn) GCC development scheme for Jordan, will comprise 22 storage facilities for light petroleum products such as liquefied petroleum gas, as well as derivatives including diesel, gasoline and jet fuel.

"Apart from upgrading the oil sector infrastructure, it is designed to help the Jordanian government address challenges in achieving energy self-sufficiency and securing strategic reserves of petroleum derivatives,” Mohammed Saif Al Suwaidi, ADFD director general said in a statement on Thursday.

Jordan currently imports oil and products to meet around 98 per cent of its energy demand, making it particularly susceptible to price volatility in the oil markets. Jordan’s public debt reached 95.3 per cent of the gross domestic product at the end of last year, according to the country’s ministry of finance.

The ADFD, last year, also contributed Dh550m towards a 105 megawatt project in southern Jordan. The Quweira solar power plant, will generate 227 gigawatt hours of power annually over a period of 20 years, with the capacity to illuminate 50,000 homes. Energy-scarce Jordan has embarked on an ambitious programme to generate 20 per cent of its power requirements from renewables by early-2020.

Published: June 13, 2019 05:44 PM


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