ADC signs $125m Deal to develop Aqaba's liquefied natural gas terminal

AMMAN — The Aqaba Development Corporation (ADC) on Monday signed a $125-worth agreement with a consortium of international companies to develop the Aqaba's Liquefied Natural Gas Terminal – LNG (The Sheikh Sabah Al Ahmad Al Jaber Al Sabah Terminal).

The memo, signed by ADC CEO Hussein Safadi, entailed the construction of an onshore regasification unit, as well as upgrades to the existing LNG port facilities, according to the Jordan News Agency, Petra.

Safadi described the initiative, which is being carried out in partnership with several key ministries and the National Electric Power Company,  as a strategic milestone for Aqaba's port system in line with global standards.

Aqaba port is a vital energy supply option for Jordan, he said, attaching importance to the outlet's role.

The project aims to secure LNG as a reliable alternative for power generation and industrial needs, particularly in the event of supply disruptions. It also aims to reduce the costs associated with power generation, he added.

Safadi commended the Ministry of Planning and International Cooperation and the Kuwait Fund for Arab Economic Development for providing partial financing through a soft loan and other essential support.

Established in 2015 by the ADC,  the Sheikh Sabah Al Ahmad Al Jaber Al Sabah LNG Terminal includes facilities for LNG imports and a floating storage and regasification unit, which serves as a backup energy source in case of natural gas supply disruptions.