Jordan Considers Measures To Lower Its Energy Bill

Burdened by a massive energy import bill of JD3.4bn ($4.8bn) in 2011, the Jordanian government is currently examining measures aimed at reducing its budget deficit. Prime Minister 'Awn al-Khasawna told visiting officials from the International Monetary Fund (IMF) earlier this month that the government has drawn up a plan to increase energy prices, which is ready for implementation. He explained that with the frequent disruption of Egyptian gas supplies to the kingdom via the Arab Gas Pipeline (AGP), which has so far been bombed 14 times since the beginning of 2011, it was no longer possible to maintain energy prices at fixed levels. Egyptian gas, which fuelled about 80% of the kingdom’s power generation, was sold to Jordan at preferential prices, prior to the Egyptian revolution of January 2011. The loss of Egyptian gas has therefore been a big burden on the budget.

Jordan is also discussing short term plans with Qatar to import LNG by tanker to the Port of 'Aqaba on the Red Sea, the Minister of Energy and Mineral Resources Qutaiba Abu Qura has said. In the long term, Jordan and Qatar are considering a project to build an LNG terminal at 'Aqaba, which could take up to two years or more to complete. Also, the kingdom is discussing long term plans to import gas from Iraq by pipeline, when it becomes available. But this would entail the construction of a new pipeline linking the Iraqi fields to AGP, which currently crosses Jordanian territory (MEES, 13 February).

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