AMMAN — The Aqaba Development Corporation (ADC) said on Monday that it had commenced detailed studies and designs for a new JD45 million oil derivatives pier, scheduled to become operational in early 2029. 

 

ADC said in a statement, cited by Al Mamlaka, that the project, which aims to enhance the Kingdom’s energy security, has entered its second phase of detailed planning in cooperation with international consultant Royal Haskoning DHV, following positive initial feasibility studies.

 

The Cabinet has recently approved the ADC board’s decision to proceed with the designs based on these feasibility indicators, which estimated a projected internal rate of return (IRR) ranging between 14.7 per cent and 24.1 per cent, compared to an estimated cost of capital of 10.3 per cent.

 

Implemented under a public-private partnership (PPP) model, ADC will self-finance the marine infrastructure components at a cost of JD28.2 million, while a specialized operator will invest around JD16.8 million in operational equipment, the statement said.

 

The new pier will add an annual handling capacity of approximately 5 million tonnes. This expansion is expected to alleviate pressure on Aqaba’s sole existing oil pier, which currently operates at a high occupancy rate of 60 to 90 per cent, causing vessel waiting times of 50 to 70 hours.

 

Designed to accommodate vessels with a deadweight tonnage (DWT) of up to 160,000 tonnes, the new facility will handle a wide range of materials, including green ammonia, bitumen, petroleum products, crude oil, chemicals, oils and heavy fuel.

 

ADC emphasized that the project will safeguard Jordan’s energy supply chains by reducing reliance on a single terminal, diversifying import routes and supporting an export corridor for Iraqi oil.

 

According to the project timeline, construction is slated to begin between the second and third quarters of 2027 following the floating of two parallel tenders: an Engineering, Procurement and Construction (EPC) contract for the marine pier, and a lease-operate-transfer (LOT) investment opportunity for the port’s operation.

 

The project aligns with the objectives of the Economic Modernisation Vision to upgrade port infrastructure, boost public-private integration and eliminate vessel delay fees by accelerating handling operations, the statement said.