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2027 Draft Budget: New Lane for Iraqi Oil Transport and 15-Fold Surge in Al-Sarhan Field Allocations

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12-11-2026 04:34 PM

jordan pulse -

​AMMAN
​Jordan’s 2027 General Budget Draft Law has allocated approximately JD 50.75 million across nine projects tied to oil and natural gas—accounting for 80.6% of the Ministry of Energy and Mineral Resources' total capital expenditure budget of JD 62.93 million. The allocations feature substantial increases for developing the Al-Sarhan field and expanding natural gas delivery to industrial cities, alongside the introduction of a new project to construct and equip a dedicated lane for transporting Iraqi oil.
​According to budget figures reviewed by Al-Mamlaka, the Ministry’s total capital expenditures rose by JD 9.91 million (18.7%) compared to the re-estimated JD 53.02 million for 2026. The overall estimated budget for the Ministry in 2027 reached JD 69.97 million—up 17.2% from the re-estimated JD 59.69 million in 2026—while current expenditures edged up from JD 6.674 million to JD 7.038 million.
​Key Energy and Mining Budget Allocations for 2027
​Risha Gas Field Development (JD 33.25 Million): Executed through the National Petroleum Company (NPC), the Risha gas field captured the largest single share of capital spending at 52.8%. This reflects a 5% decrease (JD 1.75 million) from the JD 35 million allocated in 2026. Indicative estimates project JD 20 million for 2028, with no additional allocations listed for 2029.
​Al-Sarhan Field Development (JD 7.5 Million – Up 15-Fold): Allocations surged by JD 7 million compared to the re-estimated JD 500,000 in 2026. Indicative estimates earmark JD 8 million for 2028 and JD 10 million for 2029, bringing total planned funding over the three-year period (2027–2029) to JD 25.5 million.
​Iraqi Oil Transport Lane (JD 2.5 Million): A newly listed capital project receiving JD 2.5 million in 2027 and an indicative JD 3.2 million in 2028 (totaling JD 5.7 million over two years), after receiving no funding in 2025 or 2026. Budget schedules did not specify the lane's location, tanker capacity, or operational timeline.
​Hamza Oil Field Production Development (JD 2 Million): Maintained at the same level as 2026, though 37.5% lower than the actual expenditure of JD 3.2 million recorded in 2025.
​Petroleum Exploration & Marketing (JD 1.65 Million – Down 61.6%): Reduced by JD 2.65 million from the re-estimated JD 4.3 million in 2026, standing at less than half of the JD 3.5 million spent in 2025.
​Natural Gas for Industrial Cities (JD 3.5 Million – Up 75%): Increased by JD 1.5 million over 2026, split between JD 2.5 million for the Zarqa Industrial City project (up 66.7%, with indicative allocations of JD 3 million in 2028 and JD 5 million in 2029) and JD 1 million to supply other industrial cities (doubled from JD 500,000 in 2026). This aligns with the Economic Modernization Vision’s second executive program (2026–2029), which targets Muwaqqar, Al-Rawdah, and the King Hussein bin Talal Development Area.
​Gas Distribution Networks & Sheikh Hussein Crossing Line (JD 350,000): Includes JD 150,000 to encourage natural gas distribution networks across Jordanian cities (unchanged from 2026) and JD 200,000 for the Sheikh Hussein border crossing gas pipeline (up 14.3% from JD 175,000 in 2026). Combined with industrial city gas projects, total natural gas infrastructure funding reaches JD 3.85 million for 2027.
​Mineral Resources Exploration (JD 2 Million – Up 100%): Doubled from the re-estimated JD 1 million in 2026, with indicative projections rising to JD 2.5 million in 2028 and JD 4 million in 2029.
​Royal Directives on Energy Infrastructure and Renewables
​The budget figures coincide with a high-level meeting chaired by His Majesty King Abdullah II on Wednesday at Basman Palace, attended by His Royal Highness Crown Prince Al Hussein bin Abdullah II, to follow up on strategic energy infrastructure projects—specifically power generation, energy storage, and energy port operations.
​His Majesty stressed the necessity of accelerating priority energy projects to meet growing demand, strengthen supply security, and enhance grid efficiency. He emphasized creating an attractive investment climate to expand renewable energy generation and storage, upgrading the national electrical grid's absorption capacity, modernizing energy port management, and deepening partnerships with the private sector to drive economic growth.
​Source: Al-Mamlaka / Rum News Agency


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