The Ministry of Energy announces the mechanism for delivering natural gas to factories

02-Oct-2022

Alghad - The mechanism for delivering natural gas to industries from the main gas pipeline to the factory site stipulates a direct contract between the final consumer and contractors, which was agreed upon between the Ministry of Energy and Mineral Resources and the relevant parties.
According to the mechanism published by the ministry on its website, the contract will be supervised by the joint technical advisor appointed by the Ministry of Energy and Mineral Resources and the Jordanian-Egyptian Fajr Company for the supply and transportation of natural gas.
The mechanism for implementing the infrastructure required to deliver natural gas to industries from the main natural gas pipeline also stipulates the possibility of any factory contracting with any engineering company (contractor) for the purposes of designing and implementing the infrastructure required to deliver natural gas to industries from the connection point with the main gas pipeline to the final consumer site. (Supplementary facilities) provided that you commit to submitting a request to supply natural gas, either through the Ministry of Energy and/or through the Egyptian Jordanian Fajr Company and providing Fajr Company with data related to fuel consumption and required gas quantities.
It stipulated that the final consumer choose the contractor within the list approved by the ministry. The factory so that the company is specialized in gas stations (high pressure) and pipelines (high pressure and has management and experience in designing and/or implementing these works, in addition to the Ministry’s evaluation of these companies (the contractor) through the assistance of the consulting company approved by the Ministry at the expense of the factory and informing it After
the selection of the qualified contractor is completed, an information exchange confidentiality agreement will be signed according to the document approved by the Ministry.
According to the mechanism, the Ministry and/or Fajr Company shall provide the engineering company (the contractor) with the approved detailed specifications for the establishment of the subsidiary facilities and in accordance with the specific specifications and codes, and the list of approved suppliers in supplying the tasks and facilities of the components of the subsidiary facilities to ensure that the components of the subsidiary facilities are in accordance with good industry practices and in accordance with the specific specifications and codes and in accordance with For the designs of the natural gas pipeline project in order to avoid the supply of any materials of low quality that may affect the integrity and integrity of the Arab Gas Pipeline.
According to the mechanism, a list approved by the Ministry and Al-Fajr Company has been identified with the names of the consulting companies, and the final consumer must choose one of these companies at the expense of the factory so that an agreement is signed between Al-Fajr Company and the final consumer after being approved by the Ministry of Energy to cover the expenses incurred in appointing the consulting company.
After the appointment of the technical advisor, the final consumer submits the technical offer for the subsidiary facilities that he obtained from the contractor so that the technical advisor reviews it carefully and accepts the technical offer or makes comments or rejects it. Technical advisor.
In the event that the technical offer is rejected by the technical advisor, the Jordanian government or Al-Fajr Company will not bear any financial consequences as a result of the appointment of the consulting company.
In the event that the technical advisor accepts the offer submitted by the contractor, the procedures for signing the agreement for the establishment of a new supply point for the factory will be proceeded according to the approved formula for the case of implementing the subsidiary facilities by the end consumer.
After the survey is approved, the contractor shall submit the detailed survey work according to the requirements of Al-Fajr Company and the Ministry of Energy and in accordance with the coordinate system approved by the Department of Lands and Surveys.
The Jordanian-Egyptian Fajr Company is addressing the ministry to proceed with the procedures for expropriating the project's lands, and implementation may not begin before the acquisition procedures are completed.
In the event that the acquisition took place and the land was not used within the legal period stipulated in the expropriation law, all financial and legal consequences resulting from that will be borne by the final consumer.
According to the mechanism, the final consumer is responsible for all necessary procedures during the implementation period, including supplies, works, customs, and others, and the full tax impact resulting from proving the value of the project within the assets of Fajr Company and in accordance with the approved mechanism for the supply of gas to industries.
The final consumer also provides Al-Fajr Company with all the supporting documents related to the project, and is committed to transferring the ownership of the entire parts of the subsidiary facilities implemented within the limits of the acquisition of the natural gas pipeline project immediately after obtaining a certificate of completion of the work from the technical advisor and before the gas is paid.
Under the mechanism, Al-Fajr Company undertakes the maintenance and operation of the subsidiary facilities at the expense of the factory, and takes into account what the final consumer incurs in paying the tax impact of the project and the depreciation of the subsidiary facilities by granting the factory a reduction in the annual value of the operation and maintenance work to a maximum that does not exceed 100 percent of the annual value For operation and maintenance works.
According to the mechanism, the contractor is not entitled to work within the precinct or the vicinity of the gas line without obtaining the necessary permits from Al-Fajr Company, while the final consumer is obligated to establish gas stations in places served by roads and provide the project with the required facilities and services.
After the completion of the project implementation, the technical advisor prepares the final report on the completion of the project's work, and accordingly, the Ministry issues a certificate of completion of the project's work.
This mechanism excludes any works related to the facilities that Al-Fajr Company has implemented or will implement to deliver natural gas to factories. It also does not include allowing the factory to carry out works or technical interventions directly on the main gas pipeline and its facilities.
According to the mechanism, the factory is responsible for the works of the engineering company (contractor), suppliers, sub-contractors and any persons affiliated with them at the site, and undertakes to indemnify the Ministry, Al-Fajr Company and any third parties for all damages incurred by them, persons, public or private property, the gas pipeline, or other final consumers. result of those actions.

 









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