Khaberni - Energy and Mineral Resources Minister Saleh Al-Kharabsheh, on Saturday, inspected the development project of the liquefied natural gas port (Sheikh Sabah Al-Ahmad LNG Port) in Aqaba, which is considered one of the strategic projects to enhance energy supply security in the kingdom.
During the visit, Al-Kharabsheh held a meeting with the contractor, the project advisor, and the project manager Omar Al-Badour from Aqaba Development Corporation. Also present were the General Manager of the National Electric Power Company Sofyan Al-Batayneh, the Logistics Company Director Ashraf Al-Rawashdeh, and the Director of the Oil and Gas Directorate at the ministry, Iman Awad.
Al-Kharabsheh reviewed the latest updates and developments during the meeting, in addition to discussing the challenges and obstacles related to the project’s progress.
The project aims to maintain the option of importing liquefied natural gas for generating electricity and supplying industries, considering it a strategic option to ensure continuity of supply in case any of the current supply sources are disrupted. It also contributes to reducing the cost of electricity generation.
Aqaba Development Corporation oversees the implementation of the project, in collaboration with the Ministry of Energy and Mineral Resources and the National Electric Power Company. The project includes the development of a shore-based regasification unit (ORU) with a capacity of up to 700 million cubic feet per day, in addition to replacing the current floating storage and regasification unit (FSRU) with a new floating storage unit (FSU).
The project is financed through two concessional loans; the first from the Kuwait Fund for Arab Economic Development amounting to 18.2 million Kuwaiti dinars, and the second from the Arab Fund for Economic and Social Development worth 21 million Kuwaiti dinars.
The tender for the shore-based regasification unit's execution was awarded to the consortium of The Joint Venture of AGP International Holdings Pte Ltd, Gas Entec Co. Ltd, and Issa Haddadin & Partner, with a value of 125 million US dollars. The project is scheduled to be executed over 22 months from the start date, with operations commencing in September 2026.
It is noted that on September 5, 2024, a leasing contract for the floating storage unit (FSU) was signed between the National Electricity Company and BW LNG Limited for a duration of ten years that concludes with ownership.
