AMMAN — Manufacturers and industry representatives said the government's continued rollout of natural gas infrastructure to industrial zones will help lower production costs, improve the competitiveness of locally manufactured goods, support export growth, attract investment and create employment opportunities.

 

In statements to the Jordan News Agency, Petra, they said the inauguration of the natural gas station at Quweira Industrial City represents an important step in addressing one of the main challenges facing the industrial sector, as energy costs remain a significant component of manufacturing expenses.

 

Prime Minister Jaafar Hassan inaugurated the natural gas station in Quweira Industrial City in Aqaba on Sunday as part of a government strategy aimed at reducing energy costs by 35 to 60 per cent in industrial cities and clusters across the Kingdom.

 

He also inaugurated a natural gas station in Aqaba's Southern Industrial Zone to support manufacturers through lower energy costs.

 

The project to supply industrial cities with natural gas is designed to strengthen the industrial sector, improve the competitiveness of the national economy, attract investment, increase exports, support environmental sustainability and contribute to the objectives of Jordan's Economic Modernization Vision (EMV).

 

Chief Business Development Officer at Omlaq Industrial Group, Mohammad Sumadi, said the project reflects efforts to remove obstacles facing manufacturers and provide the conditions needed for industrial growth.

 

He noted that Jordanian industry has demonstrated its ability to access regional and international markets and said continued investment in infrastructure, reliable energy supplies and a more competitive business environment would further strengthen the sector.

 

Sumadi said extending natural gas to industrial areas represents a long-term investment in the competitiveness of the national economy by giving factories "greater" certainty in planning and expansion while encouraging investors to establish new industrial projects or expand existing ones, particularly in energy-intensive industries.

 

He added that lower operating costs and improved infrastructure would enable manufacturers to increase production, expand exports, and develop products with higher added value, strengthening Jordan's position as a competitive industrial destination.

 

According to Sumadi, investment in industrial infrastructure also supports sustainable industrial growth, enables companies to introduce new production lines, and creates additional employment opportunities.

 

He added that closer integration between energy and industrial policies remains an important element in achieving the targets of the EMV and increasing industry's contribution to gross domestic product.

 

Jordan Chamber of Industry (JCI) President Fathi Jaghbir described the Quweira station as a strategic step to enhance the competitiveness of Jordan's industrial sector, noting that energy costs remain among the industry's most significant challenges.

 

He said energy accounts for an average of 30 to 35 per cent of industrial production costs and exceeds 40 per cent in some energy-intensive sectors, including chemicals, construction materials, plastics and mining.

 

As a result, he said, reducing energy costs would "directly" improve the competitiveness of Jordanian products in both domestic and export markets.

 

Jaghbir said the government's strategy to reduce energy costs through wider use of natural gas provides manufacturers with a more efficient and stable energy source while reducing dependence on more expensive conventional fuels.

 

He added that competitive energy prices would make industrial cities more attractive to investors, particularly those operating in energy-intensive industries, where energy availability and cost are major considerations when selecting investment locations.

 

Jaghbir said the benefits of lower energy costs would extend beyond manufacturers by improving productivity, supporting industrial expansion, increasing exports and creating jobs, in line with the objectives of the EMV.

 

He also called for accelerating the extension of natural gas infrastructure to industrial cities and clusters across the Kingdom to allow more manufacturers to benefit from lower-cost energy while strengthening energy security through diversified supply sources.

 

Jordan Investors Association President Mujahid Rajabi said providing natural gas to industrial zones is a key factor in improving the competitiveness of Jordan's industrial sector at both the regional and international levels and in supporting exports.

 

He said the opening of the Quweira station would improve production efficiency and reduce factories' operating costs, contributing to higher product quality and stronger export competitiveness.

 

Rajabi noted the project as the beginning of broader initiatives to modernise the energy sector in support of Jordan's transition toward a greener economy based on innovation and technology.

 

He added that natural gas is a cleaner source of energy than conventional industrial fuels and would help reduce carbon emissions while supporting the country's sustainable energy objectives and environmental goals.

 

Rajabi also said reliable natural gas supplies would increase the attractiveness of Aqaba's industrial zone to both domestic and foreign investors, stressing that cooperation between the public and private sectors would help accelerate development projects and strengthen the investment environment.

 

President of the West and North Amman Industrial Investors Association, Saeed Rassas, said access to natural gas is one of the key enablers of Jordan's industrial sector.

 

He said expanding energy efficiency programs alongside wider use of natural gas could reduce electricity consumption in industry by as much as 27 per cent, improving the competitiveness of Jordanian products, increasing exports, and attracting additional industrial investment.

 

Rassas added that the Quweira project provides a model that can be expanded to other industrial cities and clusters across the Kingdom in support of the EMV, while strengthening energy security, improving production efficiency, and supporting the transition to a more sustainable and competitive industrial sector, Petra reported.