UAE-Funded Project to Provide Strategic Oil Reserve for Kingdom
06.17.2019 - NEWS

June 29, 2019 [The Jordan Times] – Prime Minister Omar Razzaz on Thursday inaugurated the Abu Dhabi-funded strategic oil reserve facilities, designed to ensure energy self-sufficiency for the Kingdom for more than one month.

Razzaz opened the $210-million project in the Madonah area with a holding capacity of 350,000 tonnes, the Jordan News Agency, Petra, reported.

The facilities, owned by the Jordan Oil Terminals Company (JOTC), will effectively provide a strategic reserve of fuel for emergency cases, as well as upgrade the oil sector’s infrastructure and create job opportunities for Jordanian technicians.

The storage facilities will provide a stockpile of diesel to cover the Kingdom’s demand for 34 days, gasoline for 30 days, jet fuel for 34 days and liquefied petroleum gas for 16 days, according to Petra.

Razzaz said that the issue of energy has been arduous for the Kingdom due to its location in a “fiery” region, citing the high costs Jordan incurred as a result of disruptions to fuel supplies from Iraq and Egypt during critical times.

The premier expressed gratitude to the Emirati government and people, noting that this cooperation reflects the “brotherly ties” between the two countries.

Highlighting the importance of the project, Razzaz said that the government aims to increase the strategic reserve to cover the Kingdom’s consumption for three months, which is important for national security.

“We are seeking to manage energy prices for consumers and economic sectors,” he said, noting that renewable energy projects fall within this goal.

Razzaz thanked the Jordanians who worked on the establishment of this project, and expressed gratitude to Spain and Germany for the expertise and technology they contributed in the field.

Kholoud Mahasneh, JOTC’s general manger, said that these facilities aim at providing part of the strategic reserve of oil derivatives, noting that to secure the additional needs, the company has started with an expansion project to be implemented within 30 months.

The JD20-million expansion includes three additional tanks of liquefied petroleum gas to increase the stockpile to 16,000 tonnes, she added.

Mohammed Suwaidi, the director general of Abu Dhabi Fund for Development (ADFD), said that the fund has supported a number of development projects in the Kingdom, in addition to the $210-million support to the oil reserve facility, as part of a $1,250-billion grant pledged by the UAE to Jordan in 2013.

The UAE supports Jordan’s development plans aimed at stimulating economic growth and achieving sustainable development through funding the government’s high-priority projects, he added.

Razzaz toured the 400-dunum project, commending the advanced level of the facilities, built within the highest international standards in the oil sector.

Minister of Energy and Mineral Resources Hala Zawati, in a press statement carried by Petra, affirmed that this project fosters the country’s energy security within the energy sector’s holistic strategy, aimed at maintaining stability in the market of oil derivatives and reducing energy costs. 

Founded in 2015, JOTC is a private shareholding company, wholly owned by the government. JOTC serves two goals in Jordan’s energy sector: to guarantee the security of Jordan’s oil supply, and to promote competition in the downstream petroleum market through providing its services to customers according to the open-access principles on a non-discriminatory basis, according to their website.

 

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