Page 5 - MEOG Week 48 2021

MEOG COMMENTARY MEOG

Basra-Aqaba pipeline, designed to carry 1mn
bpd of oil from Iraq’s oil-rich Basra Governorate
to the Jordanian port of Aqaba via Haditha, ena-
bling the export of Iraqi crude from the Red Sea.
A 150,000 bpd spur will also run to the Zarqa
refinery near the Jordanian capital.
With imports catering to more than 90%
of the Hashemite Kingdom’s energy demand,
there is significant motivation for the explora-
tion effort, while renewables and Jordan’s large
oil shale reserves are also expected to contribute.
At an estimated 40-70bn tonnes, Jordan’s oil
shale deposits are the eighth-largest in the world
and may underlie over 60% of the country’s terri-
tory, with Zawati having spoken for several years
of plans to achieve production of 25,000 bpd.

Shale power
Despite the environmental challenges of tapping
oil shales, Amman has been emboldened by the
launch in Q2 of the first unit at the Kingdom’s
flagship shale-fired power plant.
State-owned China Energy Engineering
Corp. (CEEC) announced that it had launched
first of two 235-MW units which were “syn-
chronised with the national grid”. The company
noted that it was the world’s largest oil shale
power plant and it had reached 96% completion.
It is expected to consume around 10mn
tonnes per year (tpy) of oil shale, which can be
burned directly for electricity generation.
CEEC is the engineering, procurement anticipates renewable energy – almost exclu-
and construction (EPC) contractor for Attarat sively solar – and oil shale to account for 31%
Power Co. (APCO), a joint venture (JV) between and 15% respectively of Jordan’s total electricity
Malaysia’s YTL Power International (45%), Chi- generation by 2030, though the oil shale figure
na’s Guangdong Yudean Group (45%) and Esto- is notably the same as the target had previously
nia’s Enefit (10%). been for 2020.
The $2.1bn project includes an open-cast The development of Jordan’s hydrocarbon
mine and will generate 3.7bn kWh, enough resources has been stunted by their uncon-
to cater to almost 20% of Jordan’s electricity ventional nature, and while Amman has made
demand. CEEC noted that the project “has repeated efforts to tap conventional resources,
adopted an advanced oil shale circulating fluid- timing and the availability of more exciting alter-
ized bed boiler, over 70% of which is made [in] natives have posed significant challenges.
China”. Given the success of international bid rounds
According to APCO, the plant will supply for solar, there can be little doubt about the coun-
power to Amman’s National Electric Power try’s attractiveness to businesses, but as industry
Co. (NEPCO) under a 30-year power purchase players shift attention towards cleaner forms of
agreement (PPA) with a competitive tariff and energy, even buoyant oil prices have failed to
minimum linkage to the global oil price. Mean- drum up significant interest.
while, the APSO JV is assuming all risk relating Not blessed with the hydrocarbon resource
to the supply of fuel and water. wealth of its neighbours, Amman is likely to
Despite the environmental challenges of maintain its prudent and diversified approach
tapping oil shales, Jordan has remained bullish to supply security even if NPC reports a major
and Zawati has spoken of its potential to help success or an international player takes a punt
diversify the kingdom’s electricity supply. She on one of the open areas.™

Week 48 01•December•2021 www. NEWSBASE .com P5