TAQA Arabia has launched a 14‑km gas pipeline in Jordan, targeting lower industrial energy costs and improved fuel reliability.

TAQA Arabia has launched construction of a 14‑kilometer natural gas pipeline in Jordan, strengthening energy infrastructure for industries operating in the Al‑Rawdah Industrial City within the Ma’an Development Area.

Jordanian Prime Minister Jafar Hassan laid the foundation stone for the project, marking the start of an initiative aimed at improving natural gas access for industrial users and supporting the country’s broader energy and manufacturing sectors, according to TAQA Arabia’s LinkedIn page.

The pipeline forms part of two natural gas supply projects being developed to serve the Al‑Rawdah and Al‑Muwaqqar industrial cities. The combined projects are supported by approximately USD 70 million in funding from the Abu Dhabi Fund for Development (ADFD), highlighting continued investment in Jordan’s industrial energy infrastructure.

TAQA Arabia secured the project in August 2026 after establishing a branch in Jordan. The company is expected to oversee the development and implementation of the pipeline while maintaining operational, quality, and safety standards throughout the construction phase.

Tarek El‑Hawary, Managing Director of TAQA Gas, a subsidiary of TAQA Arabia, previously stated that the company would focus on delivering reliable natural gas supplies to manufacturers located in the Ma’an Development Area. Improved access to pipeline‑based gas could provide industrial consumers with a more dependable energy source while reducing reliance on alternative and potentially higher‑cost fuels.

Construction is expected to take approximately 18 months. Once operational, the project is projected to reduce energy costs for industries in Jordan by between 35% and 50%. Lower energy expenses could improve the cost competitiveness of manufacturers and potentially support greater industrial activity in the development area.

For TAQA Arabia, the project also represents an expansion of its natural gas infrastructure footprint beyond its established operations. The company, founded in 2006, operates across several energy segments, including natural gas transmission and distribution, conventional and renewable power generation, and oil product marketing.

The development comes as industrial consumers increasingly seek reliable and cost‑efficient energy supplies to manage production expenses. By extending natural gas infrastructure to Al‑Rawdah Industrial City, TAQA Arabia could help improve fuel availability and support the development of new and existing manufacturing facilities in the region.

The project therefore represents more than a pipeline expansion, with its expected impact extending to industrial operating costs, energy reliability, and the long‑term development of Jordan’s manufacturing base.

Product and Chemical Commodity Price Impact

The pipeline is likely to have a supportive impact on industrial chemical and petrochemical production in Jordan by improving access to reliable and potentially lower‑cost natural gas. Reduced energy expenses could lower operating costs for gas‑intensive manufacturers, potentially supporting production and improving competitiveness. For chemicals tracked by ChemAnalyst, increased gas availability could indirectly support demand for products such as methanol, ammonia, urea and other gas‑based derivatives if new or expanded industrial capacity follows. However, the project's 18‑month construction timeline means the immediate impact on commodity prices should remain limited. Over the longer term, stronger industrial activity could increase regional chemical demand, while improved gas supply may moderate energy‑related production costs.