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Last Updated: March 2014

Overview


Map of Jordan
Map of Jordan
  • Jordan, unlike its immediate neighbors, does not possess significant energy resources. As of January 2014, the Oil & Gas Journal estimated Jordan's proved oil reserves at just 1 million barrels and its proved natural gas reserves at slightly more than 200 billion cubic feet (Bcf). Oil shale resources have the potential to increase Jordan's reserves significantly, and the country plans to build the first oil shale-fired electricity generation facility in the Middle East after 2017.
  • As a result of its lack of significant energy resources, Jordan relies heavily on imports of crude oil, petroleum products, and natural gas to meet domestic energy demand. Government sources indicate that energy imports meet more than 90% of Jordan's energy demand, and those imports account for more than 40% of the country's budget.
  • Government statistics indicate that in 2012 the use of crude oil and oil products accounted for approximately 88% of Jordan's total primary energy demand, but that domestic sources of oil and natural gas met less than 2% of that demand.
  • Jordan is pursuing several pipeline deals, notably with Iraq, to help bolster its energy security. One proposal would send Iraqi oil from the area around Basra to the Jordanian port of Aqaba on the Red Sea. If constructed, the pipeline would initially carry up to 1 million bbl/d of oil, including more than 100,000 bbl/d available for use inside Jordan. The plan also calls for a natural gas pipeline to run along the same route as the oil pipeline, with up to 100 million cubic feet per day (MMcf/d) being allocated to help meet Jordanian demand.
  • The Arab Gas Pipeline (AGP)—which runs through Jordan from Egypt—is the principal source of Jordanian natural gas imports, although volumes fell dramatically in 2011 and 2012 as a result of unrest in the Sinai Peninsula and in Syria. Initial estimates indicate that Jordan boosted oil imports (particularly fuel oil, which is used in power generation) significantly to make up for the AGP's loss of volumes, falling from 89 billion cubic feet (Bcf) in 2010 to 17 Bcf in 2012.
  • Hydrocarbon exploration near Jordan's eastern border with Iraq and in the areas around the Dead Sea could lead to additional discoveries, but in the short term Jordan will continue to rely on energy imports and a nascent renewable energy sector to meet domestic energy demand. Jordan's government plans to boost electricity generation capacity from renewable sources to 1.8 gigawatts by 2020, up from just 18 megawatts at present.