2012 began with a particularly hefty reckoning for Jordan when the government received the largest energy bill in the Kingdom’s history: JD2.75bn ($3.87bn). Jordan relies heavily on imports for its energy needs – some 98% – and in 2011, energy amounted to 26% of total Jordanian imports. Yet cooperation with other regional states may hold the answer to the Kingdom’s current energy supply challenge.
Jordan’s massive stores of oil shale have been the topic of much discussion lately, with investors keen to help the kingdom harvest the energy locked in the layers of rock underfoot.
Regional events are forcing Jordan to look past its traditional sources of energy, both in terms of feedstock and physical location. Disruptions in the supply of natural gas to the kingdom coupled with rising costs, mean it may look elsewhere for feedstock, while also pushing forward with its own nuclear energy programme.
In an effort to satisfy a growing appetite for energy, Jordan is working to wean itself off costly imported oil and make better use of its own resources. The country hopes to attract $14bn in investments in energy infrastructure, including the construction of a nuclear reactor scheduled to come on stream in 2018, and efforts focused on developing renewables and oil shale.
Jordan’s stable political environment, as well as the robust growth projections for its economy, should ensure near term investment inflows continue to fuel growth across the board; however, regional instability has been having a negative impact on the country’s tourism sector and rising refugee numbers are putting increased pressure on state services.
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