Jordan's reliance on energy imports

  • Official Name: Hashemite Kingdom of Jordan.

Summary: This Middle Eastern country relies on imports for its oil and natural gas consumption. The government is actively seeking alternative sources of energy to support the growing demand for electricity that has accompanied the country’s economic diversification and population growth.

The Hashemite Kingdom of Jordan is small country located in the Levant region of western Asia. Jordan is landlocked except for 16 miles (26 kilometers) of coast on the Gulf of Aqaba. With few naturally occurring sources of energy and a semi-dry climate, Jordan’s municipal demand for energy has pushed the state to investigate alternative energy sources to meet both energy and water consumption needs. Attempts by the government to encourage the adoption of renewable energy sources such as biofuel, solar energy, and wind power have not been widely implemented.

Lack of Natural Resources

Jordan’s lack of natural resources is reflected in the relatively small size of its economy in comparison with those of other countries in the Middle East. Domestic energy requirements in Jordan are met using imported oil, petroleum, and natural gas products. Jordan imports 15,000 barrels of crude oil per day (2023 estimates), produces 403 barrels of refined petroleum products per day (2023 estimates), and consumes 114,000 barrels of refined petroleum products per day (2023 estimates). According to 2022 estimates, Jordan produced 187 million cubic meters of natural gas and consumed 4.4 billion cubic meters.

Jordan is connected to the Arab Gas Pipeline, which carries exported oil from Egypt to Jordan. The first section of the pipeline is divided into three segments. The first segment consists of an overland pipeline and compression station and connects Al Arish, Egypt, with Taba, Egypt, on the Red Sea coast. The second segment runs undersea from Taba, Egypt, to Aqaba, Jordan. The third segment links the pipeline to a metering station and the Aqaba Thermal Power Station. Another section runs from Aqaba, Jordan, to El Rehab, near the Jordan-Syrian border. Still another section was completed in 2008 and connects El Rehab to Homs, Syria. In 2006, Jordan, Egypt, Syria, Lebanon, Turkey, and Romania agreed to extend the pipeline to the Turkish border, opening up the possibility of delivering gas to European nations. As of 2023, the pipeline was in Jordon, Egypt, Syria, and Lebanon.

Although a lack of oil and natural gas deposits has posed a significant energy problem, Jordan does possess measurable quantities of oil shale and uranium that could be used as future sources of energy. Oil shale deposits have been found in 60 percent of Jordanian territory, the equivalent of about 40 to 70 billion tons. The most significant oil shale deposits are all located within 46 miles (75 kilometers) of the Dead Sea, namely, Juref ed Darawish, Sultani, Wadi Maghar, El Lajjun, Attarat Umm Ghudran, Khan ez Zabib, Siwaga, and Wadi Thamad. Jordanian oil shale was mined by the Ottomans before and during World War I. Jordanian deposits are high in sulfur content and will require additional processing to yield usable petroleum products. In 2008, Jordan’s Ministries of Energy and Natural Resources, the National Electricity Power Company, and Eesti Energia signed an agreement granting Eesti Energia the exclusive right to build an oil shale power station by 2015. Construction of the station was delayed but received financing worth $2.1 billion in March 2017. However, Eesti Energia sold its majority stake of the station during that year. As of 2022, the Attarat Power Plant was owned by YTL Power International (45 percent), Guangdon Energy (45 percent), and Eesti Energia (10 percent).

In addition to oil shale, Jordan is exploring the use of its uranium deposits as a potential source of energy. Jordan’s uranium reserves amount to 2 percent of the world’s total, or about 180,000 tons of uranium derived from uranic ore and phosphate deposits. Although neither of these resources has been incorporated into Jordan’s current energy supply, various studies and negotiations are under way to establish uranium and oil shale as sustainable domestic energy resources.

Jordan is exploring the possibility of using its uranium deposits to create nuclear power. In 2007, the Jordanian government unveiled the National Nuclear Energy Strategy, a long-term plan aimed at mitigating the expense of importing oil from neighboring countries by introducing nuclear power stations for the generation of electricity. The government had hoped to build two 1,000 MW nuclear power units by 2025, but as of 2024, the country was considering using small modular reactors instead.

Jordan is embarking on several research and development initiatives concerning alternative energy sources. The country has set a goal of generating 50 percent of its energy using renewable sources by 2030. By 2023, 29 percent of its energy was produced from solar and wind power.

Bibliography

"Jordan." The World Factbook, Central Intelligence Agency, 30 July 2024, www.cia.gov/the-world-factbook/countries/jordan/. Accessed 3 Aug. 2024.

Ghazal, Mohammad. “All Set for Building Oil Shale–Fired Power Plant.” The Jordan Times, 16 Mar. 2017, jordantimes.com/news/local/all-set-building-oil-shale-fired-power-plant. Accessed 3 Aug. 2024.

"Renewable Energy. Country Commercial Guide." International Trade Administration, 17 Jan. 2024, www.trade.gov/country-commercial-guides/jordan-renewable-energy. Accessed 3 Aug. 2024.