IEEJ : July 2013

Energy Situation in Jordan________________________________
Ministry of Planning and International Cooperation

JordanMojahed Elsagheer

Ministry of Energy and Mineral Resources

Current Energy Challenges
Jordan is facing a real challenge in securing its energy
supply due to:Almost no indigenous energy resources
High dependency on imported energy(97% imports in 2011)
Oil prices up(energy imports accounted for 16% of GDP in 2011)
Continued increase in demand- high growth of primary energy demand (5.5% per annual)- high growth of electricity generated capacity (7.4% per annual)Ministry of Energy and Mineral Resources

Cost of Energy
 Cost of imported energy in 2011 was 4019 million

JD.
- Crude oil and oil products- Imported natural gas- Imported electricity

3700 million JD
122 million JD
197 million JD

 Total subsidies for oil products in 2011 was 555
million JD.
Accumulated loss for electricity production was
992 million JD.

Ministry of Energy and Mineral Resources

Present Energy Crises
 Repeated sabotage of the Arab Gas Pipeline, which supplies
Egyptian natural gas to Jordan, since February 2011, andresulting disruption in gas supplies has significant adverse
macroeconomic implications for Jordan. Prior to thesabotage, Jordan imported about 80% of its gas needs from
Egypt to generate electricity. When supplies of natural gas
were interrupted, power plants had to switch to heavy fueloil and diesel for electricity generation, which are aboutfour times more costly than natural gas. This move cost thecountry approximately 3.5 million JD a day.
As a result, 555 million JD was paid as subsidy for oil
products in 2011.

Ministry of Energy and Mineral Resources

Potential and Strong Points
 Jordan is considered as a hub and transit country andcan play a major role linking oil, gas and electricity
networks among the region.
 Jordan has a huge potential of Renewable Energy
utilization (wind, solar).
(Solar radiation 5-7 Kwh/m2 per day, wind speed 7-11 m/s).
 Jordan has a huge potential of energy resources (Oilshale, Uranium).
 Jordan has potential of oil and gas exploration.

Ministry of Energy and Mineral Resources Liberating oil products prices and adoptinginternational parity pricing for oil products.

an Restructuring the oil sector and open the market forcompetition.
 Establishment of Electricity Regulatory Commission in2003.
 Structuring regulatory framework- General Electricity Law- Renewable Energy & Energy Efficiency Law- Energy Law (in progress)

Ministry of Energy and Mineral Resources

Implementation of Sector Policy A sound strategic framework is in place whose mainelements are the Updated Energy Master Strategy of
2007, which is currently in the process of being revised,
and the Executive Development Plan 2011-2013 of the
Ministry of Energy and Mineral Resources (MEMR) to
face the challenges of high and volatile energy prices,
decreasing conventional energy resources, growth inenergy demand and growing environmental concerns.

Ministry of Energy and Mineral Resources

Addressing Challenges
 The GoJ is seeking to address challenges in the energy
sector through a combination of medium to long-term
solutions. Additionally, the GoJ is seeking to improve its
energy security and lower its exposure to external shocks
in terms of supply. It is also working on theimplementation of measures in line with the objectives toimprove fiscal and macro-economic situation and soundand sustainable growth for Jordan.

Ministry of Energy and Mineral Resources

Short-Term Solutions
 Construct LNG Jetty at Aqaba port and connect withmain Arab Gas Pipeline to diversify the gas resources.
(the cost of this project is around 300 million JD and the
GoJ has allocated US$ 65 million to fund the Jetty andother onshore infrastructure).
 Increase the country’s strategic oil and oil products
storage capacity. (the cost is around 250 million JD).
 Implement comprehensive Energy Efficiency program inall sectors. (the cost is around 50 million JD).

Ministry of Energy and Mineral Resources

Medium and Long Term Solutions
 Continue the implementation of the country’s energy
strategy through:– Maximizing the utilization of domestic resources (oilshale, natural gas, etc.).
– Expanding the development of renewable energy
projects.
– Generating electricity from nuclear energy.
– Enhancing regional interconnection of electricity andpromoting Jordan as a regional hub.

Ministry of Energy and Mineral Resources

Renewable Energy Targets
Promoting Renewable Energy to share 7% in the primaryenergy mix in 2015 , and 10% in 2020 : 1200 MW Wind Energy
 600 MW Solar Energy 20 - 30 MW Waste to Energy

Ministry of Energy and Mineral Resources

Current Activities and Projects
A. Renewable Energy and Energy Efficiency Law:
The Renewable Energy and Energy Efficiency Law No.(13) of2012 have been issued in the Official Gazette on 16/4/2012.
By-Laws and Regulations for Investment:
The by-laws and regulations related to renewable energy
projects for electricity generation have been issued by theElectricity Regulatory Commission, especially the indicative
price list for Renewables and the Net-metering mechanism forsmall RE systems.
Renewable Energy & Energy Efficiency Fund:
Upon the issuance of the Renewable Energy Law, MEMR
started the process for establishing this Fund.

Ministry of Energy and Mineral Resources

B. Direct Proposal Submission:- Expression of Interest:
MEMR received (64) EOIs, (34) of them with total capacity of (1000MW) have been shortlisted on 23 April, 2012. (29) MOUs weresigned.

Ministry of Energy and Mineral Resources

C. Al-Kamshah (30-40) MW Wind Energy Project:
Project stopped under the direct proposals submission due to withdrawal of thetwo bidders. MEMR is studying options in this regard.
D. Fujeij (70-90) MW Wind Energy Project:• Coordinated by the World Bank.
• An Addendum was issued to bidders to submit revised bids
August 2012.
• One revised bid was received, under evaluation.

by the 23rd

E. Al-Azraq (1) MW PV Solar Project (Debt Swap):
Tender Documents prepared and submitted to the Spanish Government for
approval. Tender to be lunched in September to Spanish companies.

Ministry of Energy and Mineral Resources

Future Activities and Projects
A. Wind Pooling Project in the Southern Region with a
Capacity of (200-300) MW:•

Under land surveying, tender to be lunched in
September. Pending upon successful conduction of
the joint wind measurement campaign.

B. (100) MW CSP Solar Project:•

Pending upon securing the required soft financing
schemes and the Land at Quweirah site.

Ministry of Energy and Mineral Resources

C. Direct Proposal Submissions under the Signed MOUs
with the Qualified Applicants:
Direct Proposal Submissions for Renewable Energy
Projects are expected as follows:•Photovoltaic (PV) Projects; by the 1st quarter of year
2013.
•Concentrated Solar Power (CSP) Projects; by end
2013.
•Wind Energy Projects; by the end of 2013 or the 1stquarter of 2014.

Ministry of Energy and Mineral Resources

Oil Shale
The Energy Strategy comprises promoting oil shale as a
new source of energy to contribute 11% in the primaryenergy mix in 2015, and 14% in 2020.
The GoJ is currently engaged with a three-tracks
approach to deal with Oil Shale development.

Ministry of Energy and Mineral Resources

Oil Shale Exploiting Oil Shale in three ways:
1. In Situ technology to produce oil from deep reserves of oil shale (Shell
Technology): The company is executing it’s exploration program in theconcession are (the Final Investment Decision to be taken during theperiod 2020 to 2023).
2. Surface Retorting of Oil Shale: Currently (6) international companies are preparing bankablefeasibility studies to produce oil from the surface oil shale reserves
especially in Lajjoun and Attarat Umm Ghudran areas in the southernpart of Jordan.
The Estonian Company Enefit and the British Karak International
Oil Company have signed Concession Agreements to produce oil
through surface retorting, now the two companies are completing their
Exploration and Development programs to take the Final Investment
Decision.

Ministry of Energy and Mineral Resources

Oil Shale
3.

Electricity Generation through direct combustion of oil shale:

Negotiations ongoing with the Estonian Governmental Company
Eesti Energia to develop a 430 MW plant on BOO basis for power
generation to be operational in 2016. The company was given a
Comfort letter to be used for financing reasons.



A MoU was singed with a consortium consisting of the ChineseCompany (HTG) and the Jordanian Company (Lajjoun) to
conduct a complete feasibility study for developing (600-900) MW
power plant through direct combustion of oil shale.

Ministry of Energy and Mineral Resources

Electricity Sector• The actual electricity generation capacity in the kingdom is 3050
MW.
• Electricity consumption is amounted to 2800 MW during the peak
period.
• It is expected that the annual growth rate of demand for electric
power to reach about 7.4% up to the year 2020.
• Two decisions for changing the electricity tariff were taken by thecabinet in which the tariff was increased with an average of 20% for
all consumers categories and the tariff level reached to 88 fils/kWhinstead of 72 fils/kWh, while the cost of electrical system tariff isabout 189 fils/kWh.
• There is an electric interconnection with Egypt & Syria under theframework of Eight Countries Electric Interconnection Projects.

Ministry of Energy and Mineral Resources

Electricity Sector
 Continuing the privatization of power sector program.
 Diversifying the energy sources for electricity generation
through using oil shale, nuclear and renewable energy.
 Attracting Independent Power Producers( IPP) to generate
electricity on BOO basis.

Ministry of Energy and Mineral Resources 4000 MW new additional generating capacity is needed
until the year 2020. This capacity will be implemented
through Independent Power Producers (IPPs) based on
BOO basis with an average 300MW /annum.
Project /Tender

Status- First IPP- 370 MW CC(AES- Mitsui)

in operation since September 2009.

- Second IPP- 373 MW CC(Kepco)under commissioning test

- Third IPP: 573 MW. Diesel
engines on dual fuel.
-Fourth IPP with a capacity of
241 MW

Expected to be in operation in 2014

Ministry of Energy and Mineral Resources

Oil and Gas Exploration
 Increase oil and gas exploration activities.
-The Kingdom is divided into 9 blocks according to its
geological features.
-Five blocks are currently under concession agreements.
-South Jordan block under process of CSA.
-Al-Jafer area and Dead Sea blocks under process of MOU’s.
-Northern highlands block is still open for exploration.

Ministry of Energy and Mineral Resources

Petroleum Sector• Currently crude oil is imported from Saudi Arabia, at an average of 2.5 million
barres monthly with an annual signed contract with ARAMCO Saudi Arabia on acommercial basis.
• Daily imports of about 10000 barrels of crude oil from Iraq and it was agreed toincrease the imported quantity to 15000 barrels daily.
• The consumption of crude oil and its products was about six millions tons of oil
equivalent in the year 2011.
• 70% of the kingdom’s needs of oil products is secured by Jordan Petroleum
Refinery Company (JPRC), and the remaining 30% of the quantity is supplied fromthe world market via tenders submitted by JPRC.
• It is expected that the average annual yearly growth for energy demand until theyear 2020 is about 5.5%.
• Monthly pricing of products is made according to world procedures which includes
the average pricing as published in the economic brochure such as Platts plus theextra charges on delivery of these oil products from the world markets to theconsumer.

Ministry of Energy and Mineral Resources

Securing Storage Capacities for Crude Oil and Oil Products• The tender for this project has been announced (Request forPrequalification), and it is anticipated for the project to be inoperation in the first half of 2014 for building storage
capacities ( 100,000 ton crude oil or products in Aqaba).
• Assigning of extra land for the project about 23,000 square
meter sto be used for building storage capacities in Aqaba
about 6000 tons to meet the kingdom’s need for three days in
winter.

Ministry of Energy and Mineral Resources

Energy Ports in Aqaba•

The Ministry of Energy and Mineral Resources together with Aqaba
Development Cooperation (ADC) and Aqaba Special Economic Zone
Authority (ASEZA) are following up to continue the studies for build andconstruct the projects of the following energy ports in Aqaba:•

Development and rehabilitation of the current oil port (19 million JD), to be
operational in of 2013.
Temporary berthing facility to serve the LPG vessels (3.5 million JD), to be
operational by the end of 2014.
Building LNG port (45 million JD), tender has been announced in September
2012 to be operational in end of 2014.
Building the second oil jetty to be operational after the year 2017.
Building LPG port to be operational in 2015.
Miscellaneous Liquids port in partnership with the private sector.

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Ministry of Energy and Mineral Resources

Liquefied Natural Gas

Timb
er
Jetty

R
FS G
LUN
C

 Approval of the cabinet on 26/5/2012 to import LNG
through three main tracks:
1. Importing LNG from international market throughtendering or bilateral agreements- complete tendering
process and awarding gas contract by one year fromdate of cabinet resolution.
2. Constructing LNG Jetty and connecting with main
Arab Gas Pipeline (issuing tender by ADC incoordination with MEMR. GoJ has allocated 65
million USD to fund the Jetty and other onshore
infrastructure).
3. Leasing FSRU through requesting for proposals fromthe main FSRU providers, to be completed by the endof 1st quarter of 2013.
 Holding a meeting of joint technical team with Qatariside to discuss the issues related to supply Jordan with
LNG after making available all the data requested bythem. A technical meeting was held in Amman which
agreed upon the next steps..

Ministry of Energy and Mineral Resources

Priorities in the Energy Sector
Presented for Donor Support

Ministry of Energy and Mineral Resources Construct LNG terminal at Aqaba port to diversify thegas resources.
 Increase the country’s strategic oil and oil products
storage capacity.
 Assist Jordan Government to complete alreadyundertaken institutional and legislative reforms, with aview to create the best possible enabling environment
to mobilize public and private actors to achieve goals of
10% renewable energy and 20% of energy saving in
2020.

Ministry of Energy and Mineral Resources 100 MW Concentrated Solar Power (CSP) project:through the Mediterranean Solar Plan (MSP), where
soft financing is expected through the so-called Clean
Technology Fund (CTF) managed by the World Bank.
A roadmap for project financing and implementation iscurrently undergoing by an international consulting.
Financial support is required for this project.
 2 MW (PV) Solar Power Project: through a soft loan
provided by the Spanish Government. Financial
support is required for the expenses of the expected
Consultant to supervise the implementation andconstruction of the project.

Ministry of Energy and Mineral Resources Renewable Energy & Energy Efficiency Fund (REEEF): tobe established under the Renewable Energy Efficiency Law
provisions. Support is required for the Fund after
establishment.
 Promoting support on sustainable production and use ofrenewable energy, its importance in accelerating thetransition towards a low-carbon economy, and also its
positive effects on the economics of developing countries,
serving to generate income and employment, to combat
poverty and inequality.
 Creation of knowledge-networks and partnerships within
and between regional authorities, in order to promote thesustainable production use of RE worldwide.

Ministry of Energy and Mineral Resources Setting up the Energy Efficiency Database within theframework of the “support to the implementation of the
Jordan Energy Efficiency Roadmap”.

 Supporting Ministry of Energy and Mineral Resources withconcerned experts to qualify the Energy Service Companies(ESCO’s) and experts in the field of training and enabling
the energy auditors.

Ministry of Energy and Mineral Resources

Contact : report@tky.ieej.or.jp