Energy
From The Report: Jordan 2012
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Unlike many of its neighbours, Jordan does not benefit from large hydrocarbons reserves. Consequently, around 96% of Jordan’s energy is imported, which costs as much as 20% of GDP on an annual basis. Spending on oil imports increased by 80% in January 2012 year-on-year, and this follows a 58% increase in spending between 2010 and 2011. To reduce dependence on foreign imports, policy makers are continuing to pursue an energy diversification strategy as a matter of urgency, focusing on new sources of natural gas in the short term, as new private-sector proposals in oil shale, nuclear and renewables come to fruition.

This chapter includes interviews with Qutaibah Abu Qura, Minister of Energy and Mineral Resources; Mike Weightman, Chairman of the Regulatory Cooperation Forum; and Christopher Morgan, Chairman of Karak International Oil.

Articles from this Chapter

Overview

Plan of action: Preparations to meet increasing demand are under way
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Addressing Jordan’s energy imbalance had already been at the top of the government’s agenda before its Egyptian natural gas imports began to be disrupted in early 2011. But in view of the ongoing attacks on the Egyptian gas pipeline, policymakers now see the country’s energy balance as an issue of national security. As such, the government is keener than ever to diversify the national energy pool, and to tap domestic energy resources which have to date remained largely unexploited. In pursuing…

Interview

OBG talks to Qutaibah Abu Qura, Former Minister of Energy and Mineral Resources
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Interview: Qutaibah Abu Qura What are the main challenges associated with renewable energy generation in Jordan? QUTAIBAH ABU QURA: Renewables are about to capture a major portion of the global energy mix. In Jordan, our energy policies also foresee a growing role for renewables, especially given the surge in fossil fuel prices. Our strategy for the sector aims to install capacity of about 1800 MW from various renewable sources and boost the contribution of renewables to our energy mix from the…

Interview

OBG talks to Mike Weightman, Chairman, Regulatory Cooperation Forum (RCF); Chief Inspector, UK nuclear installations; and Executive Head, Office for Nuclear Regulation
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Interview: Mike Weightman How has the RCF helped Jordan establish an independent and effective nuclear regulatory regime? MIKE WEIGHTMAN: Jordan, one of dozens of nations considering a nuclear programme, is a member of the RCF, established in 2010 to assist in the development of functionally independent and robust nuclear safety regulatory bodies. The RCF mainly focuses on countries considering the introduction or expansion of nuclear programmes. Under the auspices of the RCF, and as its chair,…

Analysis

Searching for gas: Finding alternatives for imports has become a priority
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In an effort to supplement increasingly disrupted supplies of Egyptian liquid natural gas (LNG), Jordan is urgently seeking alternative import solutions. Securing new sources of gas is of vital importance in the short term, given that the government is having to spend billions of dollars per year on diesel and heavy fuel in order to make up for the Egyptian shortfall. But in the longer term as well, the national energy strategy envisages that natural gas will still contribute 29% to the country’s…

Analysis

Power surge: A raft of foreign investment is set to boost generation capacity
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With an attractive regulatory environment for investment in electricity generation, the sector has seen new injections of foreign capital in recent months. Jordan’s privately owned distribution companies are in a similarly favourable position; their power purchase agreements (PPAs) ensure that the state-owned National Electric Power Company (NEPCO) bears the burden of increased generation costs. PRIVATISED: Electricity generation is now largely in the hands of the private sector. The Central…

Interview

OBG talks to Christopher Morgan, Chairman, Karak International Oil
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Interview: Christopher Morgan How much could oil shale realistically contribute to Jordan’s energy mix, and how do the country’s resources compare to those found abroad? CHRISTOPHER MORGAN: The potential for oil shale production in Jordan is enormous, especially given the size of the local economy. Like phosphate resources, shale resources exist across the kingdom’s entire territory; indeed, geologically, both phosphate and shale oil come from the same source rock that dips under Saudi Arabia.…

Analysis

Supporting security: Despite progress, much needs to be done to introduce nuclear power
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Longstanding plans to develop Jordan’s nuclear energy resources gained some momentum, but also suffered some setbacks . The controversial project remains politically divisive and has several obstacles yet to navigate, including the selection of an appropriate site for a planned reactor, the provision of adequate financial and human resources, and the finalisation of a strong regulatory framework for the sector. On May 30, 2012, parliament passed a bill requiring work on Jordan’s nuclear…