London, 18 September (Argus) — Jordan's oil ministry aims to have a new 70,000-100,000t crude and products storage terminal in the port city of Aqaba operating by mid-2014.

The deadline for 14 pre-qualified companies to submit bids to build the terminal is the beginning of November.

Energy-poor Jordan relies on crude and products imports for its domestic needs. Disruption to pipeline gas imports from Egypt has forced Jordan to rely on more expensive diesel for power generation. Amman's diesel import bill for the first six months of 2012 came to JD617mn ($871mn) compared with JD354mn during the first six months of 2011.

The country's King Abdullah cancelled a government decision taken on 31 August to boost the prices of gasoline and diesel, following protests.

Energy minister Alaa Batayneh said on 22 August that the government has been subsidising 90 Ron gasoline at the rate of 12.1pc while unleaded 65 Ron gasoline is sold at cost price. Gasoline subsidies will cost the government JD 100mn this year, he said. Diesel and kerosene are subsidised at the rate of 28.2 per cent, with the bill for subsidising those two products reaching JD 425mn, he said. High crude oil prices have pushed up the subsidy rates and the government's overall subsidies bill for 2012 to be over JD2bn, said Batayneh.

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