Jordan’s National Electric Power Company (NEPCO) has signed an agreement with Jordanian Egyptian FAJR for Natural Gas Transmission and Supply Co (Fajr) to establish a natural gas supply point for the Seventh Independent Power Producer project (IPP7), the official Jordan News Agency (Petra) reported on Thursday.

Implementation of the gas supply point is expected to be completed by mid-2027, aligning with IPP7’s readiness for operational testing, the report said.

The 700-megawatts (MW) capacity combined-cycle gas-fired power plant will be implemented under a build-own-operate (BOO) model by Etihad Development Company, a wholly owned subsidiary of Etihad Water and Electricity (EtihadWE). National Electric Power Company (NEPCO) is the off-taker under a 25-year Power Purchase Agreement (PPA).

Last week, Jordan’s Cabinet endorsed the project agreements ahead of signing for the implementation of IPP7 by the Ministry of Energy and Mineral Resources in partnership with the Etihad Development Company.

The project will be structured as a joint venture in which the Jordanian government has a 49 percent stake with the private partner holding the rest, a Petra report said.

IPP7 is expected to begin commercial operations between 2027 and 2028 and supply around 10 percent of Jordan’s electricity demand.

EtihadWE is participating as consortium member in the Misfah and Duqm gas-fired power projects in Oman, Dawadmi wind power project and Hadda Sewage Treatment Plant project in Saudi Arabia and the RAK wastewater treatment PPP in the UAE.

(Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.