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Business & Economy

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  3. Forum Discusses al-Risha Gas Field as Catalyst for National Economic Growth

Forum Discusses al-Risha Gas Field as Catalyst for National Economic Growth

02/11/2025 | 15:31:29

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Amman, Nov. 2 (Petra) -- The National Petroleum Company outlined plans to transform the al-Risha Gas Field into a cornerstone of Jordan’s energy and economic strategy, aiming to boost production tenfold by 2030, expand partnerships with the industrial sector, and increase the share of locally produced gas in the Kingdom’s total energy consumption to over 30 percent.

The announcement came during a dialogue session organized by the Jordan Economic Forum titled "al-Risha Gas Field: A New Opportunity for a New Economy – From a Strategic Asset to an Engine of the National Economy," attended by the Forum’s Chairperson Mazen Hmoud, the NPC Chairperson Laith Qassem, and the NPC General Manager Mohammad Khasawneh.

Qassem stressed that the next stage requires a comprehensive strategic vision beyond boosting production, emphasizing partnerships with the industrial sector. The company is working with three major industrial entities responsible for compressing and distributing gas to factories, a move expected to reduce energy costs by 40 to 60 percent and enhance the global competitiveness of Jordanian industries.

He underlined the importance of developing local industries using raw gas, noting that successful economies leverage natural resources to create downstream industries that add value and generate high-quality jobs. The NPC aims to turn the Risha area into a hub for Jordan’s gas industry, attracting investment and establishing export-oriented industrial opportunities.

Khasawneh highlighted that the success rate of drilling new wells has risen from 25 percent to over 73 percent following geological reassessments and advanced technologies, while the cost per well has dropped to around JD4 million due to innovative contract and procurement approaches.

He added that locally produced energy, including natural gas, renewable energy, and oil shale, now accounts for about 25 percent of Jordan’s total energy consumption, compared with 4 percent in 2010, and projected that domestic gas would exceed 30 percent once new pipelines connect al-Risha to industrial and fertilizer zones in the north and central regions.

Khasawneh also noted that three major Jordanian factories have switched to local gas, cutting energy costs by 30 to 50 percent. Gas production at al-Risha has grown from around 8 million cubic feet per day before 2019 to more than 22 million cubic feet currently, with output expected to reach 80 million cubic feet per day in the coming years. National demand is projected at 350 million cubic feet daily until 2030, with local gas contributing about 6 percent of total consumption.

He acknowledged that the distance between the al-Risha field and consumption centers poses a logistical challenge requiring over $300 million in pipeline investments, which the company is addressing through local and international partnerships. Khasawneh emphasized that the NPC operates entirely through Jordanian expertise, describing the record drilling success rates and cost reductions as a national achievement.

The company’s plan includes an integrated drilling program of 145 new wells by 2030, with the first phase already under way, involving contracts with specialized firms to supply advanced drilling and production equipment. The initiative aims to expand the number of drilling rigs and raise output capacity to over 400 million cubic feet per day, alongside connecting al-Risha to the Arab Gas Pipeline network.

A key component of the plan is a 300-kilometer gas pipeline linking al-Risha to the Khansari Industrial Zone in Mafraq, with a transport capacity of up to 500 million cubic feet per day.

The session concluded with participants agreeing that the al-Risha Gas Field represents a pivotal opportunity to redefine Jordan’s energy landscape and transform it into a strategic driver of sustainable economic growth.

//Petra// AJ

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