Egypt and Jordan expand cooperation in energy, mining, natural gas, phosphate, and ammonia projects to strengthen industrial growth and regional security.
Egypt and Jordan are expanding their collaboration across the energy and mining sectors, following discussions in Amman on Sunday, July 12, 2026, between Egyptian Minister of Petroleum and Mineral Resources Karim Badawi and Jordanian Minister of Energy and Mineral Resources Saleh Kharabsheh. The two nations aim to deepen strategic partnerships, leverage shared expertise, and enhance economic integration through joint projects.
The ministers focused on strengthening cooperation in the natural gas sector, building on the success of existing ventures like the Fajr Jordan Egyptian Natural Gas Transmission and Supply Company. This collaboration will involve increasing the participation of Egyptian petroleum companies in Jordan's energy infrastructure projects. Companies such as Petrojet, ENPPI, and Gas Misr already operate in Jordan, with EPROM, Town Gas, and Modern Gas expected to join future projects covering natural gas distribution, operations, and maintenance.
Jordan is nearing agreements with two Egyptian companies to implement natural gas distribution projects in the industrial cities of Ma'an and Al Muwaqqar. These initiatives complement ongoing gas network expansions in Mafraq and Zarqa, aiming to broaden natural gas adoption across Jordan's industrial sector. Discussions also explored opportunities in ammonia and green hydrogen production, alongside other natural gas-based industries, utilizing Egypt's extensive experience and advanced production technologies.
Cooperation in the mining sector will primarily focus on phosphate and value-added mineral industries. Both countries possess significant phosphate reserves and technical expertise, creating opportunities to maximize the economic value of these natural resources. The plans include developing phosphate-based industries, such as phosphate fertilizer and phosphoric acid production, and expanding mineral value chains.
The two sides will also collaborate on geological services and exploration activities. This expansion seeks to increase the mining sector's contribution to economic growth in both nations by establishing joint ventures that combine technical, engineering, and managerial expertise. Egypt, with the world's third-largest phosphate reserves, is actively reforming its mining sector to attract investment and support integrated industrial projects.
This expanded cooperation is expected to yield significant economic and strategic advantages. For Jordan, it aims to reduce energy costs and enhance the competitiveness of its industrial sector. Both countries anticipate increased economic value from their natural resources, fostering broader economic development. The partnership also strengthens energy security for both nations by leveraging their advanced gas infrastructure and shared resources. Ministers highlighted the importance of translating their strong bilateral relationship into tangible economic and investment projects that promote Arab economic integration.
To ensure effective implementation, Egypt and Jordan agreed to establish joint technical working groups. These groups will follow up on the discussed proposals and develop mechanisms for projects in natural gas, mining, value-added industries, infrastructure, and investment partnerships.
Impact on ChemAnalyst-Tracked Chemical Commodity Prices
The expanded energy and mining partnership between Egypt and Jordan is expected to exert a moderately bearish impact on ammonia, phosphoric acid, phosphate rock, DAP, and MAP prices over the medium to long term. Improved natural gas infrastructure will enhance feedstock availability, lowering production costs for ammonia manufacturers and potentially softening regional ammonia prices. Simultaneously, greater investment in phosphate mining and value-added mineral processing is expected to increase phosphate rock supply, supporting higher production of phosphoric acid and phosphate fertilizers. This expansion is likely to improve supply availability across the MENA region, easing potential supply tightness and increasing export competitiveness. In the near term, price movements are expected to remain limited as mining and infrastructure projects require time to materialize. However, once operational, the combined expansion of energy and mining capacities is expected to strengthen regional supply, improve market stability, and create downward pressure on fertilizer and phosphate-based chemical prices.
