Jordan has extended the concession agreement for oil and gas exploration and production in the Risha gas field with the state-owned National Petroleum Company (NPC) until 2061. This significant decision, aimed at bolstering the nation's energy security, was made during a cabinet meeting chaired by Prime Minister Jafar Hassan. The Risha gas field, a critical national asset, is strategically situated in the country's eastern desert. The extension of this agreement shows Jordan's commitment to developing its domestic energy resources and reducing reliance on external sources. The long-term nature of the concession provides a stable operational framework for the National Petroleum Company's ambitious development plans.
Boosting National Output
The National Petroleum Company (NPC) has outlined ambitious targets for increasing production from the Risha gas field. The company aims to significantly increase output to 418 million standard cubic feet per day by 2030. Looking further ahead, the NPC plans to double this production to an impressive 810 million standard cubic feet per day by 2035. These targets represent a substantial increase from current production levels and are central to Jordan's energy strategy. To support these ambitious goals, procedures are currently underway for the establishment of natural gas processing units, which are essential for refining the raw gas extracted from the field. Additionally, plans include the construction of a new pipeline designed to connect the Risha field directly to the Arab Gas Pipeline. This key infrastructure project is a key component of the strategy to enhance the field's capacity and ensure its smooth integration into regional energy networks. The pipeline project is anticipated to reach completion and become operational by 2029, a timeframe that aligns with the initial phases of increased gas volumes. This infrastructure development is vital for transporting the expanded output efficiently.
Investment and Infrastructure
The Jordanian government is demonstrating its commitment to these expansion plans by allocating a substantial JD87 million ($123 million) over a three-year period to facilitate the development of the Risha gas field. This significant financial commitment is intended to directly support the National Petroleum Company's efforts to boost gas output and integrate the field's production into the national and regional energy infrastructure. The government's investment notes the strategic importance of the Risha field to Jordan's long-term energy independence.
The financial package includes specific allocations for each of the three years, ensuring sustained funding for the project. JD35 million has been earmarked for 2026, with an additional JD35 million allocated for 2027. The final installment in this funding plan is JD17 million, designated for 2028. This phased investment directly underpins the broader strategy to increase gas production and develop the necessary infrastructure, such as the natural gas processing units and the new pipeline connecting to the Arab Gas Pipeline. This financial backing is key for the timely execution of the development projects.
Strategic Vision Alignment
The extended concession for the Risha gas field aligns smoothly with Jordan's strategic objectives for energy independence. This move is designed to support the country’s drive towards self-sufficiency in natural gas production, a key national priority. The decision also integrates with the broader goals outlined in the Vision (2026-2029) modernisation plan, which emphasizes sustainable economic growth and energy security. By enhancing domestic gas output, Jordan aims to significantly reduce its reliance on imported energy sources, thereby contributing to greater economic stability and national energy security. The long-term nature of the concession until 2061 provides a stable and predictable framework for continued investment and development in the Risha field, making it a key component in achieving the Vision (2026-2029) plan's energy targets. Increased production capacity from the Risha gas field is central to this strategy, allowing Jordan to meet a larger portion of its energy demands with locally sourced natural gas, reinforcing the nation's self-reliance.
