Jordan Times
Friday, July 22, 2005
King calls for rethink in energy strategy
AMMAN (JT) — His Majesty King Abdullah on
Thursday urged concerned parties to work out feasible solutions to improve the
efficiency and provision of the country's energy needs.
Chairing a meeting of the Infrastructure Subcommittee functioning under the
National Agenda Committee, the King said a comprehensive strategy on energy is
needed in light of the currently rocketing prices of oil in international
markets.
In December 2004, the Cabinet approved an Energy Master Plan requiring an
estimated investment of $3 billion over 20 years.
The King told subcommittee members that the strategy should define the best ways
to provide high-quality energy at a low cost.
Such a strategy would enhance the competitiveness of the national economy and
improve living standards, the Monarch said.
Last week, King Abdullah sent a letter to Prime Minister Adnan Badran directing
him to set up a taskforce under the National Agenda Committee to study the
national economy's energy consumption and future needs.
The team is expected to design plans to improve energy consumption efficiency
and define new sources of energy.
Head of the National Agenda's Infrastructure Subcommitee Naser Lawzi briefed
King Abdullah on the work of his panel and the energy taskforce “whose
recommendations will be clear during the next month.”
Earlier this month, the government slashed JD120 million of its JD360 million
subsidy on oil derivatives and float fuel prices by 2007.
The move is aimed at reducing the growing budget deficit, expected to reach
JD720 million this year.
Badran urged the industrial sector to replace oil fuel with gas imported from
Egypt under a 15-year renewable deal signed by the government to ensure low
fixed price gas.
Speaking to the Jordan News Agency, Petra, on Thursday, Secretary General of the
Energy and Mineral Resources Ministry Khaldoun Qteishat said that Jordan's
energy bill is expected to jump to $2 billion this year.
He said the government is currently engaged in feasibility studies to distribute
Egyptian gas to households in Amman and Zarqa. Tenders are due to be announced
before the end of the year, he added.
By the end of this year, two major electricity plants, Rihab and Khirbet Al
Samra, will switch from oil to natural gas. The two facilities, in addition to
the Aqaba Thermal Plant, provide 75 per cent of the country's electricity needs.
Officials also referred to a current pilot project in Aqaba, which seeks to
modify car engines to use natural gas and then apply the idea, if feasible, in
other parts of the Kingdom.
The government is also looking to speed up plans for oil and oil shale
exploration, especially in the Lajjoun area near Karak.
According to the National Energy Research Centre, Jordan possesses enormous
reserves of oil shale that could potentially lead to self-sufficiency.
Citing geological surveys, the centre says the “proven” oil shale reserves are
estimated at more than 50 billion metric tonnes and can be utilised
commercially.