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Jordanian-Egyptian firm to supply two local factories with natural gas

By Mohammad Ghazal - Jan 12,2017 - Last updated at Jan 12,2017

AMMAN — In “a first move of its kind in the Kingdom’s energy sector”, the Jordanian-Egyptian FAJR for Natural Gas Transmission and Supply Company on Thursday signed an agreement with Fine Hygienic Holding to provide two of its factories with natural gas.

Under the agreement, which followed the government’s approval and plan to provide industries with natural gas, the Jordanian-Egyptian company will provide Fine Hygienic Holding’s Al Keena Hygienic Paper Mill and Al Snobar Hygienic Paper Mill Co. Ltd. with 3.2 million cubic feet of natural gas per day.

The agreement will help save 23 per cent of the two factories’ costs after tax, Ghassan E. Nuqul, vice chairman of Nuqul Group, said at a signing ceremony.

He added that Fine Hygienic Holding produces around 82,000 tonnes of hygiene paper of which about 70,000 tonnes is exported.

Fouad Rashad, CEO of the Jordanian-Egyptian company, said the agreement is the first step to start supplying industries in Jordan with natural gas.

Under the deal, the Jordanian-Egyptian company will also build and operate the necessary infrastructure to supply gas to the two plants.

Energy Minister Ibrahim Saif stressed the economic benefits and positive environmental impacts of the agreement.

“The agreement will help reduce production costs, ration the use of energy and reduce carbon dioxide emissions,” said the minister.

Last year, the government signed an agreement with the Jordanian-Egyptian FAJR for Natural Gas Transmission and Supply Company to provide local industries with natural gas.

Under the deal, signed between the National Electric Power Company and FAJR, around 70 million cubic feet of natural gas will be supplied to industries in Jordan.


Industries will save around 20 per cent of their energy bill by using natural gas, according to the ministry.

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