Amman, Oct. 13 (Petra) — Afaq Energy has received conditional
government approval to acquire full ownership of Advanced Central Gas
LLC, a liquefied petroleum gas (LPG) distributor, subject to measures
aimed at safeguarding market competition.

Minister of Industry, Trade and Supply Yarub Qudah issued Decision
No. 3 of 2026 following a recommendation by the Director General of
the Competition Protection Department and a review that identified
potential risks to competition in the centralized LPG distribution
market.

The review found that the acquisition could disadvantage small and
medium-sized companies or discourage new market entrants if Afaq
Energy used its market power and financial resources to offer
extended payment terms, indirect discounts or free infrastructure
installation.

However, the study noted that the market is regulated by the Energy
and Minerals Regulatory Commission and that LPG prices are set
through an official pricing formula, protecting consumers against
potential price-related effects of the acquisition.

To address these concerns, the approval imposes a series of
regulatory, structural and behavioral conditions that the companies
involved have committed to implementing.

Under the conditions, companies are prohibited from offering
customers payment terms exceeding 30 days or providing direct or
indirect discounts on gas supply prices. They are also barred from
offering to replace competitors’ gas distribution networks without
charging customers for the new infrastructure or installing networks
free of charge in exchange for exclusive supply agreements with micro
and small enterprises.

The decision further requires complete administrative and marketing
separation between centralized gas distribution companies owned by
Afaq Energy, prohibiting the use of one company’s assets or resources
for the benefit of another. It also prohibits deliberate workforce
reductions and requires the protection of employees’ rights.

The Competition Protection Department warned that violating any of
these commitments would automatically invalidate the approval,
require the acquisition to be reversed and the previous situation
restored, and result in legally prescribed fines.

Under Competition Law No. 33 of 2004 and its amendments, economic
concentration transactions require written ministerial approval if
the annual domestic revenue of any participating company exceeds JD10
million or their combined annual revenue exceeds JD30 million.

The department stressed that completing a transaction meeting these
thresholds without written approval constitutes a violation that
invalidates all related actions and requires the previous situation
to be restored. Such violations carry fines ranging from JD10,000 to
JD50,000, with offenders referred to the public prosecutor in cases
of noncompliance.

//Petra// AJ