Abu Ghattas
MAG Engineering & Contracting
Real Estate & Construction / Jordan
“We completed a series of transformative projects in Aqaba”
Often the unsung machine behind some of Jordan’s most iconic construction projects, MAG Engineering has led design and construction for projects such as the Aqaba LNG Terminal, which allowed the nation to begin exporting gas to Egypt for the first time in 2017. We sat down with MAG Engineering’s Managing Director Abu Ghattas to hear more about their involvement in Jordanian infrastructure.
What contracting projects is MAG Engineering most proud of?
We completed a series of transformative projects in Aqaba, including the expansion of the Aqaba Container Terminal and the construction of the new Aqaba Liquified Natural Gas (LNG) Terminal. MAG Engineering led the design and construction of the LNG terminal project, which was such a truly critical project for national stability that it involved oversight from King Abdullah II. This project is the one we are most proud of, not to mention because it was also delivered two months ahead of schedule.
Why are you so proud of the Aqaba LNG Terminal’s design, specifically?
The initial plan was for the LNG terminal to receive 42 vessels within its first year of operation; in the end, it received about 54, or 25% more of what was anticipated. In fact, we started selling gas to Egypt, instead of buying from them. That is a true success story. Moreover, the government paid around 65 million euros for the project, but because we handed it over two months ahead of schedule, we actually saved the government more than the project’s actual cost.
What other projects showcase your technical expertise?
We participated in the Disi Water Conveyance Project, which was carried out by GAMA, a Turkish contractor. They sub-contracted the most technical part, the pumping station, to us. Under this project, MAG Engineering constructed a station that pumps 100 million cubic meters of water every year for two major parts of Amman. In the industrial minerals sector, we were responsible for the construction of the Nippon Jordan Fertilizer Plant, doing parts of the main compound and towers, as well as the Aqaba Fertilizer Plant, which remains one of the best projects in the sector.
Who else have you worked with?
MAG Engineering has completed three projects with GE, building four power plants in total. With Alstom, we formed a joint venture in 2001 to construct the Aqaba Thermal Power Plant.
How is your current financial performance?
On good years, we have a turnover that exceeds $50 million. At the moment, I would say our turnover is closer to $10 million. We might not be the biggest in terms of turnover in the country, but we are selective with our projects. MAG Engineering prefers prestigious projects in sectors in which we can compete. What distinguishes us from our competitors is the fact that we are doing everything by ourselves, in house.
How would you describe your current financial stability?
In terms of financial stability, we completed six projects in Saudi Arabia over the last two years, and we have gotten payments that cover a little over 50% of the total amount. We practically financed these entire projects ourselves and now we are waiting for the other 50%, after the full recognition of completion for all six projects. It is important to note that we would have stopped these projects ages ago due to difficulties in Saudi Arabia with acquiring government funding at the time. We, however, continued and delivered the projects on time.
What sets MAG Engineering apart from its competition?
We have proved that we can work up to par with top international standards. MAG Engineering has worked with many different companies from all over the world, providing jobs and creating sites that are considered to be amongst the best in the Middle East. Our standards and quality of work continue to be our strongest points.
