**Energy Sector in Jordan**

**Summary**

Jordan's energy sector will go under major modernization in the coming
10-15 years, with the approval of Jordan's Energy Master Plan by the
cabinet, which will inject about \$3 billion of public and private
sector capital.

This plan will cover all the activities of the sector from the
exploitations of natural resources to electricity tariff levels,
including energy demand, power sector development, gas distribution, oil
refining and renewable energy.

The plan also covers legislative and regulatory reforms. Under the first
phase, Jordan will call for international investment in new power
generation, gas distribution business, and the restructuring and reform
of refined products sector.

American manufacturers and suppliers have great opportunities to serve
this sector and provide their products and services in particularly that
U.S. made products are favorable because of its quality and
competitiveness.

**Electricity Sector**

Even though Jordan is poor in its resources but the electricity sector
preserved a sustainable growth with 5% in average, covering 99% of the
country.

Currently the total installed capacity stands at 1,636 MW generated by 8
plants. These plants are fired by a combination of natural gas that is
imported from Egypt, HFO and diesel. Until now generating power in done
through Central Electricity Generating Co. (CEGCO).

Several projects will take place to add more capacity to meet the fast
growing demand:

  ----------------- ----------------- ----------------- -----------------
  Project Name      Size              Cost (m\$)        Date

  Rehab CC adding   100 MW            85                Feb, 2005
  one steam unit                                        
  for CC Conversion                                     

  Risha adding one  30 MW             18                Feb, 2005
  simple cycle                                          
  GT-Frame 6                                            

  Samra CC          300 MW            173               2006

  New IPP -- 2      300 MW            180               2009
  units combined                                        
  cycle                                                 
  ----------------- ----------------- ----------------- -----------------

On the Transmission side, which is done through National Electricity
Power Co. (NEPCO), a five years (2005-2009) plan is under way with 18
projects under construction with overall cost of \$86 million. Also
there is a long investment plan (2005-2013) that includes 58 projects
with overall cost of \$362 million divided as follow:

24 transmission lines (\$202 millions)

25 substation projects (\$150 millions)

9 system control and communication projects (\$2.8 millions)

Several civil engineering projects (\$ 6.7 millions)

As for the distribution, currently three companies handles this task,
which are Jordan Electricity Power Co. (JEPCO) covering central Jordan,
Electricity Distribution Co. (EDCO) covering East & South of Jordan, and
Irbid District Electricity Co. (IDECO) covering North of Jordan.

Currently, a major project is under way called " The Seventh Electric
Interconnection Project (EIJLLST)" that aims to connect the electrical
network in Libya, Egypt, Iraq, Jordan, Lebanon, Syria and Turkey. At
present Libya, Egypt, Jordan and Syria are electrically interconnected.
The Syrian-Lebanese is during to operate during first half of 2005, and
the Syrian-Turkish during 2006. As for the interconnecting between Syria
and Turkey with Iraq the projects are expected to start as soon as
possible.

**Oil Sector**

At present, Jordan meets its oil need from Saudi Arabia, Kuwait and
United Arab Emirates. Jordan has one oil field "Hamza" in the East near
the Iraqi border that produces 40 bd. Jordan is subdivided into (09)
blocks. The Risha area in northeast Jordan is under 50-years concession
with the Jordanian National Petroleum Company (NPC) since 1996. Dead Sea
block is under Production Sharing Agreement (PSA) with the American
Company of Trans-Global Petroleum LTD, the second exploration term of
the agreement is due to expire in 16 August 2004. Remaining blocks are
still open for international oil companies.

The Jordanian and the Iraqi government are negotiating to build a
pipeline to Zarqa refinery to accommodate Jordan's future oil
requirements. There is one oil export terminal in Aqaba port where
tankers of up to 300,000 dwt can be accommodated. Couple of the future
projects is to build new crud oil handling facility and a pipeline to
Aqaba.

The Jordan Petroleum Refining Company was established in 1956 and has a
current capacity of 107,000 b/d. Its monopoly concession is due to
expire in 2008. A major up-grading project is under sturdy for the
refinery with overall cost of \$700 millions.

One important resource that Jordan has is the oil shale; Jordan has
40,000 million tones of oil shale, which makes it the third largest
reserves in the world. The government is trying to convince
international oil companies that it's worth investing in the
exploitation of these vast reserves.

**Gas Sector**

Risha gas field is the only field that produces gas in Jordan, its
located in the Eastern parts of Jordan also near the Iraqi borders. 2003
witnessed the discovery of new quantities of natural gas (288.1 million
cubic meter) that can be extracted and utilized. This new discovery
increased the outputs of the field to 35 million cubic feet per day.
Al-Risha Power Station supplies Jordan with 10% of its electricity by
using the gas to generate electricity. Studies are under way to develop
this field.

A major project that is under way is the Gas pipeline. This pipeline
will start from Egypt's gas fields in Al-Arish going all the way into
Jordan, Syria and Lebanon. The first phase from Egypt to Jordan is
completed, and the second phase inside Jordan is under construction, it
will be completed in 2005. This gas is used to generate electricity in
theses countries.

Another project on the agenda of the government is the gas distribution
networks in major cities that will be established to supply small
customers; the estimated coast of this project is \$ 300 million.

**Renewable Energy**

Jordan is interested in exploiting all the available sources of energy.
A comprehensive plan for renewable energy is prepared. Currently three
sources are being used right now, Wind, Solar and Biogas energies.

Now there are two wind plants producing 3 GW/H. To increase the capacity
of these two plants, a feasibility study funded by USTDA and carried out
by the Delevnova Company of America.

Using the solar cells is lightening couples of remote villages. Several
activities were carried out in this field such as installing and
operating seven gauging stations, and carrying out research in the field
of water desalination by using solar cells. Other studies were carried
out to provide solar power to other remote villages.

As for Biogas energy, Jordan Bio Gas Company is operating a Biogas
factory at Rusaifaeh dump producing electricity in addition to
fertilizers. Electricity produced by this factory amounted 6 GW/H.
Expansions are under way to increase the total capacity of the factory
to 5 MW.

**Privatization Plans**

Jordan has been implementing an ambitious privatization program since
1996. Early power sector reform efforts started in 1994 when the Jordan
Electricity Authority was converted from a statutory body into a public
company owned by the government.

In 1997, as part of the government privatization program, a
comprehensive reform program for the power sector was initiated aiming
at achieving and adequate and reliable electric power supply under the
most efficient conditions in terms of quality and cost; and creation of
an operating and regulatory environment conductive to attraction of
private capital and expertise.

The Jordanian government announced its intention to privatize its stakes
in the power generation and distribution companies through separate
international tenders:

51% of Central Electricity Generating Company (CEGCO)

100% of Electricity Distribution Company (EDCO)

55.4% of Irbed District Electricity Company (IDECO)

A new (IPP) called Samrah Generating Company will be established when
the new power generations are completed, this company will be the second
source of generating electricity in Jordan after CEGCO.

In the conclusion, we feel that the Energy sector in Jordan holds good
opportunities for American companies particularly in the Electricity
sector. The expansions that will take place, the privatization of some
entities, and opening several areas to be discovered and developed will
bring demands for different type of equipment and services, which the
Americans have advantage upon others for several reasons like the good
relation between Jordan and the U.S., the funds that several
governmental agencies like USTDA and USAID provides to Jordan and the
fact that other American companies (GE, Black & Vetch,
Trans-Global..etc) are already in the market in different sectors and
have good reputation among all parties in Jordan.

Likely Investment Opportunities in Jordan's Energy Sector

+---------+------------------------------------------------------------+
| Project | Investment Opportunity                                     |
+=========+============================================================+
| R       | Investment in refinery upgrade to meet Jordan's long term  |
| efinery | requirements for refined products. Refinery to operate on  |
| Upgrade | a commercial basis in a restructured sector with           |
|         | transition period to secure development. Investment        |
|         | requirement \$700 million                                  |
+---------+------------------------------------------------------------+
| Ma      | Marketing companies will be established to import products |
| rketing | (or buy from refinery) and supply customers in Jordan.     |
| Co      | Marketing companies may also invest in the retail sector.  |
| mpanies | Marketing companies to jointly invest in refined products  |
| /       | logistics company. Retail sites to be improved Investment  |
| Retail  | requirement \$100 million                                  |
| Co      |                                                            |
| mpanies |                                                            |
+---------+------------------------------------------------------------+
| Crude   | Development of crude supply pipelines and port             |
| Supply  | infrastructure .                                           |
| Infrast |                                                            |
| ructure | Investment requirement \$125 -- 300 million                |
+---------+------------------------------------------------------------+
| Gas     | Development of gas distribution networks in major cities   |
| Distr   | to supply gas to smaller customers. A number of            |
| ibution | concessions to be awarded by tender. Investment            |
|         | requirement \$300 million                                  |
+---------+------------------------------------------------------------+
| Elec    | New power generation on an IPP basis. Investment in New    |
| tricity | Transmission Assets.                                       |
| Gen     |                                                            |
| eration | Investment requirement \$1250 million                      |
| &       |                                                            |
| Trans   |                                                            |
| mission |                                                            |
+---------+------------------------------------------------------------+
| Re      | Development of wind power stations. Development of solar   |
| newable | potential (for power and domestic heating).                |
| Energy  |                                                            |
|         | Investment requirement \$450 million                       |
+---------+------------------------------------------------------------+
| Oil and | New exploration opportunities -- Azraq, Sirhan and         |
| Gas     | Northern Highlands                                         |
|         |                                                            |
|         | Development of Risha -- development partner sought.        |
|         | Investment requirement \$100 million                       |
+---------+------------------------------------------------------------+
| Ind     | R&D / development of oil shale. Encourage Energy           |
| igenous | efficiency and demand side management.                     |
| re      |                                                            |
| sources | Investment requirement \$100 million                       |
| /       |                                                            |
| Energy  |                                                            |
| Eff     |                                                            |
| iciency |                                                            |
+---------+------------------------------------------------------------+

**[Contact information]{.underline}**

1\) Ministry of Energy and Mineral Resources

Azmi Khrisat / Minister

Tel: +962/6/586-3161/19

+962/6/586-3326/29

Fax: +962/6/586-5714

E-mail: <memr@memr.gov.jo>

[www.memr.gov.jo](http://www.memr.gov.jo/)

2\) National Electric Power CO. (NEPCO)

Dr. Ahmad Hiyasat / Managing Director

Tel: +962/6/581-8230

Fax: +962/6/58-8336

E-mail: <ahiyasat@nepco.com.jo>

[www.nepco.com.jo](http://www.nepco.com.jo/)

3\) Central Electricity Generating Co. (CEGCO)

Eng. Abdel Fattah Al-Nsour / Director General

Tel: +962/6/535-6986

Fax: +962/6/535-7260

E-mail: <A_ansour@cegco.com.jo>

[www.cegco.com.jo](http://www.cegco.com.jo/)

4\) Electricity Distribution Co. (EDCO)

Nawaf Obeidat / Managing Director

Tel: +962/6/533-1330

Fax: +962/6/534-1213

E-mail: <Nobeidat@nepco.com.jo>

[www.edco.com.jo](http://www.edco.com.jo/)

5\) Irbid District Electricity Co. (IDCO)

Ahmad Theinat / Director General

Tel: +962/2/720-1503

Fax: +962/2/741-0862

E-mail: <ideco@go.com.jo>

6\) Jordan Petroleum Refinery Co. (JRPCO)

Ahmd Al-Rifai / Director General

Tel: +962/6/465-7600 / 463-0151

Fax: +962/6/465-7939 / 465-7934

E-mail: <D.General@jopetrol.com.jo>

[www.jopetrol.com.jo](http://www.jopetrol.com.jo/)

7)- National Petroleum Co. (NPCO)

Abdul Elah Al-Rossan / Director General

Tel: +962/6/554-8888

Fax: +962/6/553-6913

E-mail: <management@npc.com.lo>

[www.npc.com.jo](http://www.npc.com.jo/)

8\) Natural Resources Authority (NRA)

Dr. Maher Hijazin / Director General

Tel: +962/6/581-1808

Fax: +962/6/581-1306

E-mail: <mahhij@nra.gov.jo>

[www.nra.gov.jo](http://www.nra.gov.jo/)

**To contact the U.S. Commercial Service:**

Fareedon Hartoqa, Commercial Specialist

Tel: +962/6/590-6053

Fax: +962/592-0146

E-mail: <Fareedon.Hartoqa@mail.doc.gov>

[www.buyusa.gov/jordan/en](http://www.buyusa.gov/jordan/en)