The Jordan Petroleum Refinery rose by more than 1% during trading today, Wednesday, June 21 (2023), supported by progress in the fourth expansion project, which will raise the refinery’s capacity to 120,000 barrels per day.
The fourth expansion project – in addition to raising the refinery’s capacity – aims to improve air quality in Jordan, enhance water management, conservation, treatment and recycling, in addition to switching to using natural gas instead of fuel oil in the burners of refinery furnaces and steam boilers.
The share of the Jordan Petroleum Refinery rose by the end of trading on the Amman Stock Exchange, by 1.09%, to reach 5.54 dinars (7.80 US dollars), according to data monitored by the specialized energy platform.
Jordan Petroleum Refinery
The share of the Jordan Petroleum Refinery achieved during today’s session, Wednesday, gains of 0.05 dinars (7 cents), compared to the opening price of 5.49 dinars (7.73 dollars), while the highest trading price during the session was about 5.56 dinars (7.83 dollars), according to the information that I viewed. specialized power platform.
At the same time, the number of shares of the Jordan Petroleum Refinery traded on the Amman Stock Exchange, during the day, Wednesday, amounted to about 56 thousand and 696 shares, with a trading volume of about 313 thousand and 456 dinars (441,711 thousand dollars), while the total number of trading contracts throughout the day reached About 165 contracts.
The CEO of the Jordan Petroleum Refinery Company, Abdul Karim Al-Alawin, confirmed that the fourth expansion project aims to improve the quality of products in accordance with the latest Jordanian and European specifications to meet vehicle emissions standards, in addition to enhancing energy efficiency and reducing greenhouse gas emissions as required, and specified in the Ministry’s guidelines. Environment and the International Finance Corporation.
Developments of the fourth expansion project
During his participation yesterday, Tuesday, in the session “Investment in the Industrial Sector, Energy, Mining, and Real Estate Development Projects… Opportunities, Challenges, Experiences and Success Stories,” which was held on the sidelines of the Jordanian-Iraqi Finance and Business Forum, Al-Alawin reviewed the stages of the fourth expansion project and the completed works related to the market study to determine needs.
“The selection of the refining technologies and technology licensees and the preparation of the basic engineering design documents were done by the refining technology licensees,” Petra reported.
He added that the engineering design documents, which were carried out by a Spanish company, were prepared, and the economic feasibility study for the project was prepared, in addition to selecting the project consultants, the financial, legal and environmental advisor.
He explained that the investor package documents and tender documents were prepared for the design, supply, implementation and financing of the fourth expansion project for the Petroleum Refinery Company in Zarqa, in addition to the pre-qualification of the competing companies and the selection of the best offer for the project.
Al-Alawin pointed out that the actions required to reach the financial closure require financial discussions with the preferred coalition regarding tax and customs exemptions, negotiations with investors, and negotiations with export credit agencies, in cooperation with the preferred coalition and their advisors, for due diligence examination.
He pointed out that the works include conducting a due diligence examination for all aspects of the project: legal, environmental, technical, insurance, and others, in addition to reaching the financial closure, which is expected to be achieved in the last quarter of this year.
Oil refinery expansions
Al-Alawin pointed out that the fourth expansion project also aims to generate electricity with high efficiency in the power station using natural gas, generate hydrogen from natural gas instead of “naphtha”, and cover the Kingdom’s needs of high-quality oil derivatives at competitive prices.
The project also aims to improve the environmental performance and energy efficiency of existing refining units that will be retained after expansion, and convert high-sulfur heavy fuel oil into lighter, higher-value products such as diesel, gasoline and jet fuel.
Al-Alawin indicated that the Jordan Petroleum Refinery carried out three expansions between 1960 and 1983 to increase the refining capacity to 60,000 barrels per day, saying: “After opening the oil products market in Jordan to competition in 2013, the petroleum refinery established a subsidiary of it under the name “Joptrol” to act as an arm. Marketing its products in the local market, while Jupetrol ranks first in the Jordanian transport fuel market with 30 million barrels annually.
He pointed out that the refinery owns two other subsidiaries that cover liquefied oil gas activities with a market size of 0.5 million tons annually, in addition to the production and marketing of mineral oils.
The authorized and paid-up capital of the company amounted to 100 million dinars (100 million shares, at a value of one dinar per share), while its net profit after tax last year amounted to 105 million dinars ($147.91 million), compared to 52 million ($73.25 million) for the year 2021.
It is noteworthy that the Petroleum Refinery is a public shareholding company, established in 1956, and owns the only refinery in Jordan, and began production in 1960, with a modest refining capacity of 7,500 barrels per day.
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