Jordanian Cabinet approves investing in building petroleum gas tanks

In a significant move, the Cabinet on Sunday gave its nod to investing in projects to construct tanks for Liquefied Petroleum Gas (LPG) in Aqaba but also added the rider that there will be no government guarantees to purchase LPG from these companies.
At a meeting headed by Prime Minister Abdullah Ensour, the Council of Ministers approved that dealing with requests for construction of tanks for LPG in Aqaba as per certain standards, but with the proviso that no government guarantees will be provided for the purchase of LPG from these companies. Also, it approved that these companies be granted licenses by the Aqaba Special Economic Zone Authority (ASEZA), and that there will be no government guarantee that these facilities will be used in the future.
The Cabinet stressed on using global codes and practices of good industry in designing such projects in the future and in full compliance with local legislation, since such projects were very serious in nature. It delegated ASEZA to take appropriate decision regarding approving such projects as investment opportunities on a competitive basis.
The project aims to achieve the strategic objectives of the state in reducing the energy crisis that the Kingdom is facing, and ensure energy security while diversifying its sources, besides securing sufficient storage supply.
The Cabinet also approved the technical assistance agreement for the implementation of the regional project to support and establish trade and transport corridors between Jordan and the European Investment Bank.