Energy Sector Report 12-12-2012

The Jordanian Energy
Sector
Prepared by:
Tanya Khammash,
CFA, CVA
December 12th 2012
The Energy Sector of Jordan
Table of Contents
1.0
Executive Summary
2.0
Global Energy Sector Overview

2.1
Oil
2.2
Natural Gas
2.3
Coal
2.4
Electricity
2.5
Renewable Energy
2.6
Global Energy Outlook
6
7
9
10
11
12
13
3.0
The Energy Sector in Jordan

3.1
Energy Sector Statistics
3.2
Primary Energy
3.3
Final Energy Consumption
14
14
14
19
4.0
Major Sector Players

4.1
Ministry of Energy and Mineral Resources
4.2
Petroleum, Gas and Mineral Ores
4.3
Electricity
4.4
Nuclear Energy
4.5
The Bio-Gas Company
4.6
Promoting Renewable Energy and Energy Efficiency Fund
26
26
26
26
28
29
29
5.0
Share Performance and Valuation
30
6.0
Energy Sector Index Performance
31
7.0
Traded Energy Service Companies

7.1
Jordan Petroleum Refinery (JOPT)
7.2
Jordan Electric Power Company (JOEP)
7.3
Irbid District Electricity Company (IREL)
33
33
34
35
1.0 EXECUTIVE SUMMARY

Jordan is a country that is rapidly growing, both as a result of its population demographics and due
to an influx of refugees over the past decade, with an estimated 1.5 million non-Jordanians residing in
the Kingdom currently. With its lack of indigenous energy resources, Jordan is heavily reliant on its
imports of energy to meet the growing energy demand, expected to double to a forecasted 15.08Mtoe
(million tonnes of oil equivalent) by 2020 from 7.58Mtoe back in 2007. Prices of energy imports have
soared in recent years, creating a hefty dent in the Kingdoms budget, which has prompted the
Government into action; In 2007, the Government updated its Energy Master Plan, a comprehensive
strategy for the energy sector that is hoped will transform the existing energy mix from one heavily
reliant on oil and natural gas to a more balanced mix with a higher proportion of energy supplied by
nuclear power, oil shale, and renewable sources. This comprehensive strategy for the sector requires
an estimated investment of between fourteen and eighteen billion dollars over the period 2007-2020.
Master Plan Required Investment over Period 2007-2020
Natural Gas $2,400mil
Oil Sector $3,400mil
Renewable Energy
$1,400-$2,100mil
Oil Shale Exploration

$1,400-$3,800mil
Power Sector $4,800$5,800mil
Source: Ministry of Energy and Mineral Resources
The existing energy mix is heavily weighted in favour of oil and natural gas, which, combined, make
up 93.9% of the total energy mix in 2011. This breakdown of energy, however, provides an inaccurate
representation of the typical energy mix for the Kingdom, which has had a greater weighting of
natural gas in the past. Explosions on the Egyptian pipeline that supplies Jordan with the bulk of its
natural gas needs brought about a significant drop in imported gas from 2,152.3bcm in 2010 to a mere
872.7bcm in 2011. Because natural gas is utilised by the Kingdom for the generation of 80% of its
electrical power, this drop in natural gas supply had to be replaced with oil products, which drove up
the weighting of oil in the energy mix to 82.2% in 2011 from 64.9% in 2010.
Energy Mix - 2011
Energy Mix - 2020
Imported
Electricity,
4.2%
Imported Oil Shale,

Electricity, 14.0%
1.0%
Natural
Gas, 11.7%
Renewable
Energy,
2.0%
Nuclear,
6.0%
Natural
Gas,
29.0%
Crude Oil
&
Products,
82.2%
Renewable
Energy,
10.0%
Crude Oil
&
Products,
40.0%
Surging prices of energy in recent years have hiked up the cost of the energy subsidies provided by
the Jordanian Government, placing increasing pressure on the Government budget. To ease some of
this pressure, the Government has been gradually reducing the subsidies in place since 2005. In spite
of these efforts, however, the substitution of oil products for natural gas in 2011 and through most of
2012 has been detrimental to the budget, forcing the Governments hand at finally liberalising the
remaining subsidised oil products during November of this year. Replacing the blanket-subsidy that
had been in place with a cash-based aid program targeted at the lower-income segment of the
economy, this bold but necessary move is expected to reduce the energy subsidy bill from JOD800
million to around JOD300 million per annum. Other efforts with regards liberalisation have also
been made, with a series of privatisations taking place over the past decade, particularly in the
electricity segment of the sector, to encourage competition and efficiency in the market, as well as
attracting investment to the sector. Of the more recent liberalisation moves are the granting of a
renewable temporary 6-month distribution license to the Jordan Electrical Power Company following
the expiry of its distribution concession, albeit at similar terms to those in the concession, and the
granting of distribution rights of oil products to two other companies, Total and Manaseer Group, a
right that had been exclusively granted to the Jordan Petroleum Refinery in the past.
With limited indigenous energy sources, the dual impact of rising energy prices and increased
demand has continued to highlight the need to both diversify the Kingdoms energy mix and secure a
stable energy supply. The targeted energy mix according to the Master Plan relies on a relatively
ambitious utilisation of oil shale, which is hoped to contribute 14.0% to the total energy mix. Based
on estimates of oil shale reserves, Jordan is one of the five richest countries in terms of oil shale
reserves, with over 40 billion tonnes spread under around 60% of the Countrys surface. In spite of
these abundant reserves, the monetary and environmental costs of extracting these reserves has, up
until recently, been deemed too high. However, with oil prices at current levels, the required
investment into oil shale exploration and extraction are now viewed as justifiable. The production of
electricity through direct burning of oil shale is expected to commence by 2016, while retorting the
oil shale underground should begin production by 2020-2023. The utilisation of the oil shale reserves,
combined with plans to generate 6.0% of the Kingdoms energy needs through nuclear power, could
transform the Country from an energy importer to an energy exporter by 2030.
Other plans in the works include capitalising on the Kingdoms more natural resources in the form of
wind and solar power. While renewable energy already contributes 2.0% to the existing energy mix,
wind turbine and solar power projects are hoped to raise the contribution to 10.0% of the energy mix
by 2020. The Kingdom has enormous solar energy potential, a source of energy that remains largely
untapped. The recent adoption of the Renewable Energy and Energy Efficiency Law will help
promote private sector investment in renewable energy by providing incentives for investments.
The primary obstacles standing in the way of reaching the Master Plan targets are the capital
intensive nature of the investments needed, the technical knowledge required, and overcoming
environmental concerns in the case of oil shale and nuclear power. Nonetheless, interest in
investment in the sector has been high, with the Ministry of Energy and Mineral Resources
announcing that it has shortlisted 34 companies for investment in renewable energy projects from 66
companies that had submitted expressions of interest. Going forward, it remains to be seen the
extent to which the Government will facilitate the ease of investment in the sector and the monetary
and environmental impacts such investment will have on the Kingdom. To date, the Government has
fallen behind schedule with regards the Master Plan by around five years due to the investments
falling short of those previously foreseen. As a result, the Government is focusing on both raising its
inventory of oil and oil derivatives, through building storage tanks with a capacity to hold enough oil
to cover the Kingdoms need for a period of 60 days, as well as reining in current consumption.
The Ministry of Energy and Mineral Resources is planning to build storage containers in Aqaba by
2014 to hold a capacity of 100 thousand tonnes of oil, as well as taking up the number of oil ports to
three by 2015. It also revealed its intent to resolve outstanding issues with the Jordan Petroleum
Refinery to enable it to attract a strategic investor to complete its fourth expansion project.
The Government has allocated a portion of a recent GCC grant to launch electricity generation
projects utilising wind and solar power, with a capacity ranging between 200MW and 300MW.
Arrangements are also being made, in collaboration with the Jordan River Foundation, to provide
affordable loans with low monthly repayment instalments to families wishing to buy solar panels for
their homes, which will eventually lead to a drop in electricity consumption.
The Government is also looking into options to rein in energy consumption, both through raising
prices of oil derivatives through its liberalisation and prices of electricity. Other ideas in hand are
driving restrictions, setting in place specific days in which odd-number-plated cars may be allowed
to drive and other days for even-number-plated car. Street lighting may be reduced by half on major
roads or cut out entirely on less busy roads, and scheduled blackouts may be in the pipeline if power
consumption is not contained soon.
2.0 GLOBAL ENERGY SECTOR OVERVIEW

The global energy sector has undergone a number of rapid changes in recent years, with a price runup in 2007 and 2008 caused by strong demand and declining world production, followed by a sharp
drop in prices on the onslaught of the world economic crisis and financial meltdown. In 2011 alone, a
number of factors came into play that weighed heavily on the sector, to include the Arab Spring
causing disruptions to oil supply, as well as the earthquake and tsunami in Japan, which had a
devastating impact on the nuclear power segment of the market and repercussions for its energy
sector as a whole. As a result, oil prices skyrocketed, bringing about a deceleration in the growth of
global energy consumption. Over the period 2000 through to the end of 2010, global consumption of
energy grew by a whopping 27.6% to reach 12,792Mtoe (million tonnes of oil equivalent), with the
highest growth rates occurring in 2004 and 2010. Amidst the global economic slowdown that took
effect in 2009 came a drop in total energy consumption, the first since 1982, where it registered a 1.0%
decline year-on-year as consumption of oil slumped. In 2010, however, global energy consumption
recovered, rising by 5.0% to 12,792Mtoe. The sectors growth was dampened once again in 2011 as a
result of the aforementioned events, causing a slump in growth to 2.2% to register at 13,078Mtoe.
World Energy Consumption
World Consumption by Region - 2011
Energy Consumption ( Mtoe)
Consumption
Growth
14,000
6%
12,000
5%
Asia
39.3%
Pacific
1.2% Africa
5.3%
Middle
East
5.4%
4%
10,000
3%
8,000
2%
6,000
1%
4,000
0%
2,000
-1%
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
-2%
2000
Europe
14.7%
CIS
8.3%
America
25.7%
Source: Enerdata
Nonetheless, the growth that did occur was largely driven by emerging markets, with China and India
registering consumption growth rates of 7.7% and 6.2% in 2011, respectively. China stands as the
largest energy consumer on a global scale, with its 2011 consumption registering at 2,638Mtoe. The
0.7% year-on-year drop in the United States consumption to 2,225Mtoe drove it down to second
position amongst the worlds largest energy consumers. Meanwhile, poor economic conditions in the
EU led to a more significant 3.2% decline in consumption.
In terms of energy consumption composition, the chart below highlights oil, coal and gas continuing
to make up the larger part of consumed energy, at 87.1% of the total. Coal has registered the fastest
growth amongst the fossil fuels, rising by 5.4% in 2011 to 7,304.2Mt, driven largely by Asian countries
such as China, which utilize coal for the generation of electricity. In 2011, China accounted for 45% of
the world increase in coal consumption, with a 9.7% year-on-year rise.

World Energy Consumption by Type - 2011
Oil
33.1%
Renewables
Hydro-electricity 1.6%
6.4%
Nuclear Energy
4.9%
Coal
30.3%
Natural Gas
23.7%
Source: BP
In parallel, growth in energy production also decelerated, slumping to a rate of 2.7% in 2011, down
from 4.5% the previous year, according to Enerdata. Asia accounted for the larger share of
production, at 30.0% in 2011. Asias production grew by an impressive 5.7% over the 2000-2011 period
and 7.1% in 2010 alone, but, hand-in-hand with world production, also experienced a deceleration in
growth in 2011 to 3.7%. China again was the driver of the growth, producing 62.2% of Asias output,
registering a 7.1% rise in production. While this increase was more than sufficient to compensate for
the decline in Japans production following its earthquake, Chinas production for the year failed to
cover its own consumption.
World Energy Production
World Production by Region - 2011
Production
Energy Consumption (Mtoe)
14,000
Growth
6%
12,000
5%
10,000
4%
Asia
30.0%
Pacific
2.6% Africa
8.2%
Middle
East
13.6%
3%
8,000
2%
6,000
1%
4,000
0%
2,000
-1%
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
-2%
2000
Europe
8.2%
CIS
12.9%
America
24.5%
Source: Enerdata
Europe also saw a 3.0% decline in production, while America sustained a 3.2% rise year-on-year.
Meanwhile, the loss of production in Libya, coupled with drops in production for both Algeria and
Egypt, led to a 5.7% decline in production in Africa. This was, however, more than offset by the
Middle East, which increased production by 10.1% to 1,802.9Mtoe, with Saudi Arabia, the UAE and
Qatar all producing record levels.
2.1 Oil
The strong economic growth over the period 2003 2008 drove global demand for oil, which led to a
rapid rise in oil prices, which peaked during the second quarter of 2008. The onset of the financial
crisis and global economic slowdown put a sledgehammer in the works, bringing about a sharp

collapse of prices back down to below the USD50/barrel mark. Since the start of 2009, however, oil
prices resumed their growth, re-emerging once again above USD100/barrel, driven by the drop in oil
supply from Libya coupled with disrupted supply amidst the Arab Spring.
Crude Oil (Brent) Prices in Nominal US Dollars
140.00
120.00
(USD/bbl)
100.00
80.00
60.00
40.00
20.00
Oct-12
Jan-12
Apr-11
Jul-10
Oct-09
Jan-09
Apr-08
Jul-07
Oct-06
Jan-06
Apr-05
Jul-04
Oct-03
Jan-03
Apr-02
Jul-01
Jan-00
Oct-00
0.00
Source: World Bank Pink Sheets
In terms of crude oil production, the Middle East and America are the primary producers, supplying
some 59.0% of the total in 2011. On a global scale, production increased by 1.8% and 1.3% in 2010 and
2011, respectively, following a 2.3% decline in 2009, to reach 4,029.8Mt.
Crude Oil & Natural Gas Liquids (NGL) Production and Consumption - 2011
Production
Consumption
1400
1200
1000
Mt
800
600
400
200
0
Europe
America
CIS
Asia
Pacific
Africa
Middle East
Source: Enerdata
Growth in production in the Middle Eastern countries, with Saudi Arabia registering a 13.4% increase
and the UAE and Kuwait each recording a 14.2% rise in 2011, helped offset the 9.1% drop in
production in Europe, and the 13.2% slump in African production. The United States, the third largest
producer of crude oil after Russia and Saudi Arabia, managed a 4.1% growth in production, while
Canada and China increased production by 4.9% and 0.3%, respectively. Russian production,
meanwhile, was relatively flat, rising by 0.9% in 2011.
Consumption of crude oil, meanwhile, increased by 0.5% in 2011 compared to growth of 2.3% in 2010,
as a result of continued poor economic performance and high prices of oil. America and Asia
accounted for 31.4% and 29.9% of global crude oil consumption in 2011, each seeing slight increases in
consumption that year. The consumption in America registered a 0.3% increase, while Asia saw its
consumption growth decelerate sharply to a mere 1.3% increase versus growth of 3.2% and 5.1% in

2009 and 2010, respectively, largely due to the 5.9% decreased consumption in Japan. China
continued to be the driver of growth in consumption, with the largest increase in consumption yearon-year in absolute terms. Europes consumption of crude oil fell by 1.1%, while consumption in the
Middle East grew by 0.2%, well below its 5.0% growth in consumption over the 2005-2010 period, as a
result of the political unrest in the region.
On a different note, production of refined oil products rose by 0.5% in 2011 to 3,982.7Mt, dropping
from the 2.3% growth recorded in 2010. America and Asia stood as the largest producers, registering a
0.3% and 1.3% growth in production year-on-year. Chinas production rose by 2.7%, while Japans fell
by 5.9%. The Middle East saw a slight increase in production, sustained by the 4.7% increase in Saudi
Arabias output, while Africa registered a 0.4% drop over the same period.
Growth in consumption of refined oil products also decelerated sharply to 0.6% in 2011 compared to
3.2% the previous year, with a 1.8% decline in consumption in the United States, the largest consumer
of refined oil, as well as a 2.4% drop in Europes consumption. This was compensated for by the 1.8%
rise in growth in consumption in Asia, albeit down from 6.0% growth in 2010, as well as the 3.8% and
4.1% increases in consumption in the CIS and Middle Eastern countries.
2.2 Natural Gas

In 2010, global natural gas production increased by an impressive 7.8% following its slump in 2009,
where production declined by 3.2%. In 2011, however, production decelerated to a 2.5% growth,
reaching 3,365.8bcm (billion cubic metres). America produces some 30.6% of the world production,
and it registered a strong 4.9% increase in production in 2011. The CIS countries also managed a 2.6%
increase in production, buoyed by the 2.7% increased production in Russia. Meanwhile, Asian
production was somber in spite of an 8.7% rise in Chinas production, due to declines in output in
India, Indonesia, Japan, and South Korea. Africa and the Pacific both experienced drops in their
output of 6.1% and 1.8%, respectively, but the star of the show was the Middle East, which hiked up
production by a whopping 11.1%, increasing its output from 471.6bcm in 2010 to 524.1bcm. Iran and
Saudi Arabia are the largest producers of natural gas in the region.
Natural Gas Production and Consumption - 2011
Production
1200
Consumption
1000
bcm
800
600
400
200
0
Europe
America
CIS
Asia
Pacific
Africa
Middle East
Source: Enerdata
Global consumption declined in 2009 by 2.3% to 3,065.1bcm in response to both high gas prices and
weak economies. In 2010, the recovery in demand surpassed production, with an 8.2% increase in
consumption. Alongside the slowdown in production in 2011 was a slowdown in consumption growth
to 2.8%, reaching 3,394.5bcm. Weakened economies in Europe led to a 9.0% drop in gas

consumption, largely as Germany, the United Kingdom and the Netherlands reigned in their usage.
All other regions of the world displayed positive growth in consumption, with Americas demand
rising 2.8% to 1,013.0bcm, Asias demand increasing by 7.9% to 602.4bcm, and CISs demand reaching
686.3bcm from 666.5bcm in 2010.
Natural Gas Prices
Natural Gas, Europe
Liquefied Natural Gas, Japan
Oct-12
Jan-12
Apr-11
Jul-10
Oct-09
Jan-09
Apr-08
Jul-07
Oct-06
Jan-06
Apr-05
Jul-04
Oct-03
Jan-03
Apr-02
Jul-01
Oct-00
20.00
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Jan-00
Price ($/mmbtu)
Natural Gas, US
The price of natural gas highlights the slump in demand for natural gas that occurred in 2008 and
2009 as the economic crisis hit. While the price of US natural gas has continued to suffer, the Europe
natural gas prices have resumed their upward trend, but still fall significantly below the 2008 peaks.
In terms of liquefied natural gas (LNG), new sources appeared in the Middle East and Indonesia, and
the prices of LNG have been on a relatively consistent upturn since mid-2009.
2.3 Coal
Growth in coal has surpassed the growth in other fossil fuels, with production increasing by 5.3% in
2011. Asia, and more specifically China, is both the largest producer and consumer of coal in the
world, producing 4,496.3Mt of a total 7,585.8Mt in 2011, of which Chinas contribution is 3,427.3Mt.
While all regions of the world saw a rise in coal production, larger players, such as America and India,
saw a stabilisation in their production that year.
Coal and Ignite Production and Consumption - 2011
Mt
Production
Consumption
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Europe
America
CIS
Asia
Pacific
Africa
Middle East
Source: Enerdata
10

Consumption of coal, meanwhile, rose by 5.4% to 7,304.2Mt globally, on the back of strong demand
in China and India, where coal is a key energy source utilised in coal-fired plants for the generation of
electricity. Asias consumption overall increased by 8.4% to 4,611.3Mt in 2011, while in contrast, North
America exhibited a 5.0% drop in decline, with the United States consumption falling some 4.6% to
910.5Mt. Demand in Europe remained strong, as a result of coals competitive price in light of high
gas prices, rising by 5.2% year-on-year.
Coal Prices
Coal, Colombian
Coal, South African
Oct-12
Jan-12
Apr-11
Jul-10
Oct-09
Jan-09
Apr-08
Jul-07
Oct-06
Jan-06
Apr-05
Jul-04
Oct-03
Jan-03
Apr-02
Jul-01
Oct-00
200.00
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
Jan-00
Price ($/mt)
Coal, Australian
2.4 Electricity
As the global recession came into play, electricity consumption, and thus production, was reigned in
during 2009, with production declining by a slight 0.5% year-on-year. Production recovered swiftly in
2010, rising by 5.9%, and continued to increase in 2011, reaching 22,005.8TWh (terawatt hours). Asia
and America are the largest producers of electricity, producing 8,409.9TWh and 6,384.4TWh
respectively in 2011. That year, electricity production in the United States dropped by 0.5%, allowing
China to overtake it as the worlds largest electricity producer, producing 21.2% of the world total.
China was also the primary contributor to the production growth, where it registered an impressive
11.7% increase in output. Japan, the third largest electricity producer in 2010, saw a 4.7% slump in
production in 2011 following the earthquake that hit it that year, pushing up Russias ranking to third
largest producer. Production in the Middle East rose by 4.4% as Iran and Saudi Arabia hiked up
production by 5.2% and 2.0%, respectively, while Africas output increased by 3.0% that year. Europe
was the only area to witness a decline in overall output, as production slumped in Germany, France,
the United Kingdom, and Spain, to name a few.
Driven by the rise in consumption in Asia, which increased by 10.4% and 8.3% in 2010 and 2011
respectively to reach 7,356.8TWh, global electricity consumption rose by 3.5% in 2011 to settle at
19,016.0TWh. Chinas consumption of 4,079.1TWh in 2011 surpassed that of the United States, at
3,852.1TWh, again allowing it to overtake the United States to rank as the worlds largest electricity
consumer. In spite of Japans 4.6% drop in consumption, it remains the third largest consumer in the
world. Russia, with consumption of 856.0TWh, stands as the worlds fourth largest consumer. Worth
noting, however, is that with Indias 16.2% growth in consumption of electricity in 2011 versus Russias
1.5% growth in consumption, coupled with its level of consumption of 828.3TWh, it stands to reason
that we should expect India to climb the ranks to replace Russias position in 2012. Overall, CIS
countries increased their demand by 2.5%, in contrast with Europe, whose demand dropped by 1.5%
to 3,315.2TWh, as a result of a significant 7.0% decline in consumption in France, the regions second
11

largest consumer, and declines in demand across the area owing to poor economic conditions.
Meanwhile, strong growth in Iran and Saudi Arabia brought about a 5.3% consumption increase in
the Middle East, versus growth levels of 2.5% and 2.4% in the Pacific and Africa, respectively.
Electricity Production and Consumption - 2011
Production
Consumption
9000
8000
7000
TWh
6000
5000
4000
3000
2000
1000
0
Europe
America
CIS
Asia
Pacific
Africa
Middle East
Source: Enerdata
2.5 Renewable Energy

As the prices of oil and gas have been rising over the past decade, and awareness of the
environmental impact of fossil fuels has gained ground, the importance of renewable energy as a
source of power has become more prominent. On the global scale, renewable energy made up 20.1%
of electricity production, up by 1.4% from 2010s energy mix. In Latin America, renewable energy
comprises 58.4% of the energy sources used in electricity production, while in North America, it is a
much lower 19.4%, in spite of Canadas high 63.5% reliance on renewables. While the United States
energy mix is comparatively lower in its reliance on renewable (13.1% in 2011), Enerdata reveals that in
2011 hydropower production and wind generation increased by more than one-quarter, and solar
power increased by 50%. In Europe, renewables made up just over one-quarter of the energy mix in
generating electricity, with a phenomenal 96.6% renewable share in Norway. Meanwhile, financial
incentive schemes were put in place in Italy and the United Kingdom to boost solar power use,
causing increases of 500% and 65%, respectively. The energy mix in the CIS countries has a
renewables share of 16.5%, registering a 4.9% increase since 2010, while in Asia, the importance of
renewable energy declined by 6.9% to 14.4% of the energy mix, primarily due to a drop in China,
whose importance of renewable energy in the generation of electricity lost out to the use of coal.
Africa also has a strong reliance on renewables, at 17.3% of the mix, while the Middle East has the
lowest, at a mere 2.4% of the energy mix used in electricity production.
In terms of direct consumption of renewable energy, this stood at 12.7% of the global energy mix in
2011. The use of renewable energy in primary consumption is higher in developing countries due to
usage of biomass in households, such as in the form of wood energy. In Nigeria, for example,
renewables made up 85.1% of its primary energy consumption in 2011, and for Africa as a whole, the
share of renewable energy was just under half of the energy mix. In Asia, the importance of renewable
energy has declined by 4.0% in 2011 to 13.6% of the primary energy mix, due to the 7.2% decline in
usage in China, while in North and Latin America, the share of renewable stood at 7.5% and 25.5% in
2011, up from 6.9% and 25.4% the previous year. In Europe, the share of renewable energy increased
by 4.6% to 11.8% of primary energy consumption, while in the Middle East, renewables made up a
negligible amount of its energy consumption.
12
Share of Renewables in Electricity Production

(including Hydro) - 2011
Share of Renewables in Primary Consumption

- 2011
30%
50%
25%
40%
20%
30%
15%
20%
10%
10%
5%
0%
0%
Europe America
CIS
Asia
Pacific Africa Middle

East
Europe America CIS
Asia
Pacific Africa Middle

East
Source: Enerdata
2.6 Global Energy Outlook

An outlook report by BP (BP Energy Outlook 2030) projects an annual growth rate in world primary
energy consumption of 1.6% over the period 2010-2030, giving a growth in consumption of 39% by
2030, with gas and non-fossil fuels gaining ground against other fossil fuels. Renewables are forecast
to grow at a rate of 8.2% per annum up to 2030, while oil and gas are expected to increase at 0.7% and
2.1% per annum, respectively.
The report states that energy utilised for the generation of electricity will remain the fastest growing
segment of the energy sector, at 57% of the projected growth in primary energy consumption for
2010-2030. As a result of efficiency gains anticipated over the next 20 years, the 2.6% growth per
annum in world electricity demand is projected to surpass the growth in total energy, as fuel inputs
into electricity production increase at a lower rate than the electricity produced.
Oil is anticipated to experience the lowest level of growth over the next two decades, causing it to
lose market share. Its growth will be driven by Asia and the Middle East, with the rise in supply
coming largely from OPEC.
On the other hand, natural gas is projected to be the fastest growing fossil fuel, estimated by BP at
2.1% per annum, which China contributing to 23% of the increase in global demand. The global
growth will be driven by substitution of other fuels for natural gas as a result of its relatively lower
price, as well as due to its use in industrialisation and electricity generation.
Coal consumption, meanwhile, is anticipated to continue to rise till 2020, before demand begins to
slump, reducing its growth rate to 0.5% per annum over the period 2020-2030. This is based on
assumptions of improvements in efficiency and structural changes that reduce coal intensity in China
in the future.
Non-fossil fuels are predicted to exhibit strong growth going forward, with rapid growth in nuclear
output, estimated by BP at 7.8% per annum over 2010-2030, driven by China, India and Russia.
Initially, renewable energy growth is expected to come from the EU, but the United States and China
are expected to take over as the drivers of growth from 2020 onwards. By 2030, renewables are
anticipated to generate 11% of global electricity.
13
3.0 THE ENERGY SECTOR IN JORDAN

3.1 Energy Sector Statistics
Jordan Energy Balance - 2011
(000 Toe)
Indigenous Production
Imports
Exports
Bunkers
Stock Changes
Primary Energy Supply
Total Oil
0.9
5,978.3
117.6
(279.1)
6,140.7
Natural Gas
133.9
738.8
872.7
Electricity
16.5
312.9
15.4
313.9
Solar Energy
130.0
130.0
Total Energy
281.3
7,029.9
15.4
117.6
(279.1)
7,457.3
Oil Sector
(87.9)
Electricity
(2,246.2)
Transport & Distribution Losses
Cons. Energy Supply
213.1
3,593.5
(872.7)
-
1,259.6
325.4
83.0
1,164.0
130.0
(87.9)
(1,859.2)
325.4
296.1
4,887.5
3.2 Primary Energy

The Kingdoms consumption of primary energy is composed of crude oil and oil products, natural
gas, renewable energy, and imported electricity. Crude oil and related products make up the bulk of
the consumption in 2011 at over 80.0%, up from 64.8% in 2010.
Composition of Primary Energy Consumtion in 2011
Renewable Energy
2.0%
Natural Gas
11.7%
Imported Electricity
4.2%
Crude Oil and Products

82.2%
Primary energy consumption rose sharply in 2009 to 7,775 thousand toe from 7,388 thousand toe the
previous year, on account of a 14.4% increase in the consumption of natural gas. In 2010, however,
consumption levels decreased to 7,372 thousand toe as consumption of natural gas slumped by 25.8%
to 2,289 thousand toe. The political situation in Egypt, Jordans primary supplier of natural gas, led to
attacks on the gas supply line several times during 2011, cutting off Jordans supply of natural gas,
reducing its consumption further to 873 thousand toe. Natural gas is utilised by the Kingdom to
generate electricity, with some 80% of the electricity produced in Jordan depending on the imported
gas from Egypt. To compensate for the drop in natural gas, Jordan increased the amount of imported
electricity to 313 thousand toe from 168 thousand toe in 2010, as well as raising the import of crude oil
14

to 6,141 thousand toe from 4,774 thousand toe over the same period. The sky-high prices of crude oil
meant that this swap in energy source cost the Kingdoms Treasury in excess of JOD 1.00 billion in
2011.
Primary Energy Consumption (000 Toe)
Renewable Energy
8,000
150
145
140
135
130
125
120
115
6,000
4,000
2,000
2008
2009
2010
2008
2011
Natural Gas
400
3,000
300
2,000
200
1,000
100
2009
2010
2011
4,000
2008
2009
2010
2011
2008
2009
2010
2011
The disruption in the supply of natural gas to the Kingdom, which led to a decline in the amounts
imported of around 65% in 2011 compared to 2010, coupled with the increasing burden of the high oil
prices, have highlighted the urgency of persevering with the energy master plan to diversify the
sources of energy going forward. In 2011, the total cost of imported crude oil, oil products and natural
gas reached a whopping JOD3.84 billion, up by 51% compared to 2010.
Composition of Jordan's Primary Energy Sources (2011 - 2020)
Renewable Energy
Natural Gas
Oil Shale
Nuclear
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2011
2015
2020
It is hoped that by 2020, the primary energy mix will be significantly less reliant on oil, with the mix
being weighted more heavily towards natural gas, oil shale, and nuclear energy. The complications
arising from the Egyptian gas line has prompted the Kingdom to search for alternative suppliers of
15

natural gas, and has formed a technical team with Qatar to explore the possibility of importing gas
from Qatar. Moreover, discussions were made with Iraq for the supply of natural and liquified gas.
In terms of oil shale, Jordan has one of the largest shale reserves in the world, estimated at anywhere
from 40 billion to 70 billion tonnes. The reserves lie below more than half of the Kingdoms land
surface, and up until recently, have been deemed too expensive for extraction, quantified by a World
Bank consultant on oil and energy, Mr. Mamdouh Salameh, at around JOD1.00 billion. Other
estimates have concluded that as long as oil prices remain above USD60-USD70/barrel, extraction of
the oil shale is justifiable. In recent years, the sky-rocketing prices of fuel have applied substantial
pressure on the Governments already strained budget. In 2011, the energy bill made up some 20% of
GDP and subsidies on fuel constituted a sizeable portion of the budget. The Government has since
liberalised fuel prices, replacing the subsidy instead with an aid package for the lower-income
segment of the population. Nonetheless, the heavy financial burden caused by prevailing high prices
of energy on both the Government and the Jordanian population, alongside the ongoing instability in
the region leading to tightening fuel supplies, as well as the difficulties in obtaining a stable inflow of
natural gas from Egypt, has emphasised the need for a change in the Countrys energy mix, with a
move towards alternative energy sources.
Estimated and Calculated Reserves of Oil Shale Deposits
El-Lajjun
Area (km2)
Av. Thickness of Oil Shale (m)
Av. Thickness of Overburden (m)
Geological Reserves (Mt)
Indicated Reserves (Mt)
Source: Natural Resources Authority
20.4
29.6
25.8
1,196
1,170
Sultani
24.0
31.6
69.3
1,130
989
Jurf EdDarawish
150.0
63.8
47.3
8,000
2,500
Attarat
Umm ElGhudran
226.0
45.0
53.2
11,300
10,400
Wadi
Maghar
40.0
40.5
31,600
21,600
The active stance taken by the Kingdom with regards oil shale extraction is evident in the agreements
being signed; Jordan signed a 44-year agreement with the Estonian company, Eesti Energia, to
produce 35,000 tonnes of oil share per day alongside the construction of a 460 megawatt oil shale
power plant by 2016. A British-Jordanian company, Karak International Oil, is currently exploring for
oil shale near Karak, in an initiative that is hoped to produce 15,000 barrels of oil shale per day.
Meanwhile, Royal Dutch Shell is utilising experimental technology to produce up to 40,000 barrels of
oil from the eastern desert within the next two decades. Moreover, a memorandum of understanding
has been signed with the Canadian company, Global Oil Shale Holdings (GOSH), regarding a 25-year,
USD32 billion project to provide up to 25% of the Kingdoms energy requirements. Exploration is to
occur in the region of Al-Attarat, which contains the bulk of the Kingdoms oil shale reserves.
By 2020, the energy strategy anticipates that oil shale will make up around 14% of the Kingdoms
energy mix. In spite of hype generated with regards the future outlook for oil shale, there remain a
number of obstacles facing the sector; firstly, the oil shale in Jordan has higher than average sulphur
content, which is a byproduct that will need to be captured, increasing the refining cost. Moreover, it
is feared that the electricity generated from oil shale may be more expensive than traditional fuels.
Moreover, much of the reserves are located deep within the ground, and thus cannot be mined by
conventional methods. And while the Royal Dutch Shell is utilising unconventional technologies in a
bid to extract these reserves, it still remains to be seen whether the oil shale will be economically
viable.
16

Another project on the horizon is the development of nuclear power, which is hoped to make up 16%
of the energy mix by 2020. A number of companies have been established in this sector in recent
years, including the Jordanian Energy Resources Company, a company wholly owned by the Jordan
Atomic Energy Commission (JAEC), which has a paid-up capital of JOD100.00 million and is
responsible for the exploration and excavation of uranium and other natural nuclear materials in the
Kingdom, as well as the Nabatean Energy Company, which is a coalition between the Jordan Atomic
Energy Commission and the French company Areva. As part of the Kingdoms strategy to generate
electricity through nuclear reactors, the Jordan Atomic Energy Commission has recently narrowed
the number of bids to build the first nuclear reactors in Jordan to two; the first is the bid submitted
by Atmea, a consortium made up of Mitsubishi Heavy Industries Ltd and Areva. The second is the bid
submitted by the Russian company, AtomStroyExport. The intention is to commence the
construction of a 750-1,000MWe nuclear power reactor in 2013 to begin operations by 2020, followed
by a second reactor a couple of years later, and up to four reactors by 2030.
While the nuclear energy strategy hopes to eventually transform the Kingdom to an energy exporter,
opinions on the nuclear programme remain mixed amidst fears of potential environmental damage
and health risks arising from the nuclear power plant, not to mention the substantial investment
burden that must be overcome, as well as meeting the water requirements for cooling in a country
with a limited water supply.
In terms of more environmentally friendly initiatives, the energy strategy includes an emphasis on
wind energy projects hoped to generate electricity of 600MW by 2020. The strategy includes a
number of projects under consideration; a wind project in Kamsha to generate 30-40MW, a wind
project in Fujaij to generate 60-70MW, a wind project in Harir to generate 100-200MW in phases, a
wind project in Wadi Araba to generate 40-50MW, as well as additional projects to generate a further
300MW by 2020.
Another renewable energy source is solar energy. Currently, just under 14% of households use solar
power for water heating, according to the Jordan Investment Board, and this is expected to reach 20%
by next year. According to the energy strategy, some 300MW of solar power generation will be added
to the energy mix by 2020, adding to the weight of renewable energy in the overall mix. Currently
there are two feasibility studies being carried out; the first is a 100MW plant by Millennium for
Energy Industries, which utilises Concentrated Solar Power technology (CSP), while the second is by
Kawar Energy Shams Maan Project, which entails a 100MW solar power plant that utilises PV
technology.
The Bio-gas company, a joint venture between the Central Electricity Generating Company (CEGCO)
and the Greater Amman Municipality, is generating methane gas from organic waste in Al-Rusayfeh,
producing 7.60 million cubic meters of gas in 2011, generating 8,005 MWh of electricity with a
capacity factor of 73.3%.
3.2.1 Crude Oil and Oil Products

Economic growth, coupled with a rapidly expanding population, both internal and through an influx
of refugees in the aftermath of the war on Iraq and the Arab Spring, in addition to the real estate
boom in the earlier years of this decade, led to a rise in the demand for crude oil and oil derivatives.
Jordan has limited indigenous energy resources, thus necessitating the import of its crude oil and oil
product needs. In 2007, the Kingdom imported 4.87 million tonnes of oil products, at a cost of
JOD2.06 billion with the bulk of the imports coming from Saudi Arabia. The economic crisis led to a
17

decline in volume of oil imports in 2008 and 2009, but the continued rise in prices of oil in the
international markets meant that the drop in imports did not reflect on the Kingdoms oil bill, which
rose by a further 26.1% in 2008 for crude oil and petroleum products. The drop in global oil prices did
impact on the Kingdoms oil bill the following year, where it dropped to JOD1.40 billion from JOD2.23
billion in 2008.
Imported Crude Oil and Oil Products during 2007-2011
(000 tonnes)
Crude Oil
Fuel Oil
2007
4,040
2008
3,796
91
2009
3,633
2010
3,485
307
2011
3,189
674
Growth 2011
(8.5%)
119.5%
Liquefied
Gas
223
196
234
219
288
31.5%
Diesel
Gasoline
429
320
414
670
1,361
103.1%
Jet Fuel
166
141
231
400
540
35.0%
1
1
1
1
1
0.0%
Total
4,869
4,544
4,513
5,082
6,138
20.8%
As imports resumed growth in 2010 and 2011 and oil prices recovered, the Kingdoms energy bill
continued to skyrocket, reaching JOD2.04 billion in 2010 and a whopping 3.44 billion in 2011,
registering a 45.9% and 69.1% increase year-on-year, respectively. Oil consumption soared in 2011,
particularly due to increased usage of fuel oil in the generation of electricity to make up for
disruptions in the natural gas supply from Egypt.
Imports of Crude Oil and Petroleum Products
Crude Oil
Petroleum Products
2,000,000
1,800,000
Imports (JOD '000)
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2007
2008
2009
2010
2011
8M 2012
Source: Central Bank of Jordan
Based on the value of imported oil products for the first eight months of 2012, we can forecast an
estimate of 2012s oil bill for the entirety of 2012 at around JOD4.35 billion. Because of the removal of
subsidies by the Government on fuel prices in the final quarter of 2012, however, we anticipate a
slight reduction in oil demand towards year-end, which may result in an oil bill of slightly below our
estimate.
3.2.2 Natural Gas
Although the Kingdom does produce some natural gas from Al-Risha fields, with a total output of 6.4
billion CF in 2011, it relies heavily on imported natural gas from Egypt, which is used to produce 80%
of its electricity needs. In 2011, the natural gas supply was disrupted a total of ten times due to the
uprising in Egypt resulting in explosions on the gas pipeline that supplies both Jordan and Israel.
Consequently, the volume of gas imported declined by a substantial 61.9% to 873 toe compared to
18

2,289 toe in 2010, which had to be compensated for with the use of fuel oil to generate electricity. The
disruption in gas supply cost the Kingdom over JOD1.00 billion in 2011, and is expected to reach in
excess of JOD1.50 billion this year. Egypt has resumed pumping natural gas to the Kingdom in
amounts surplus to those agreed upon to compensate for amounts that were previously undelivered.
Nonetheless, due to the high cost and the Kingdoms vulnerability from its heavy reliance on the
supply from Egypt, the Kingdom is looking into alternative sources of natural gas, in addition to
increasing the current capacity of the natural gas pipeline by doubling the number of compressors in
Aqaba. The Kingdom has also entered into discussions with Qatar regarding providing Jordan with
liquid gas via a freighter in Aqaba in the short term, as well as constructing a permanent liquid gas
terminal in Aqaba, which could be ready by 2014.
A memorandum of understanding was also signed with Iraq entailing the start of planning for a
pipeline that will carry both heavy oil and natural gas to Aqaba.
In 2009, BP was granted up to four years to explore the Al-Risha natural gas field for recoverable gas
reserves, which it announced as being successful. It has commenced drilling its first well as part of its
concession agreement. The Kingdom hopes that the discovery of economically extractable gas
reserves will help reduce its dependence on oil and gas imports.
3.3 Final Energy Consumption

Of the primary energy supplied to the market, both indigenously and through import, a substantial
proportion is utilised for the generation of electricity; in 2011, the total supply of oil products
amounted to 6.14Mtoe of which 2.25Mtoe were utilised for the production of electricity to
compensate for the shortage of natural gas supplied. Moreover, all the 0.87Mtoe of natural gas was
utilised for energy generation. Allowing for transportation and distribution losses of electricity, the
final energy consumption registered at 4.89Mtoe in 2011, the bulk of which was in the form of oil.
Sectoral Distribution of Final Energy
Consumption - 2011

4,000
3,500
Others,
16.0%
'000 TOE
3,000
Transport,
41.0%
2,500
2,000
1,500
1,000
500
Household
, 23.0%
0
Oil
Natural Gas
Electricity Solar Energy
Industry,
20.0%
The transportation sector accounts for the lions share of final energy consumption using 41.0% of the
total consumption in 2011, at 2.03Mtoe. Predictably, the sectors usage was entirely in the form of oil,
of which 56.5% was in the form of gasoline, 31.4% was in the form of diesel, and 12.1% was in the form
of Avtur. Households are the second largest consumers, at 23.0% of the total, and their consumption
19

includes 545.6 thousand TOE of oil products in the form of liquefied gas and diesel, 477.2 thousand
TOE of electricity, and 113.1 thousand TOE of solar energy.
3.3.1 Oil Products Consumption and Prices
Consumption of oil products has been on the rise in recent years as a result of an increase in the
number of people residing in Jordan through natural population growth and the influx of refugees
from Iraq and Syria. Moreover, the expansion of Ammans borders following the real estate boom
means that distances travelled have also risen, coupled with the multiple-car phenomenon exhibited
by many households, particularly in the Capital. In 2011, however, the increase in consumption was
exacerbated by a need to compensate for the decline in imported natural gas used to generate
electricity, resulting in a 24% increase in oil consumption year-on-year. Of the 6.14Mtoe of oil
supplied in 2011, 2.25Mtoe in the form of diesel and fuel oil was utilised for the generation of
electricity.
Consumption of Oil Products
2009
2010
2011
2,500
Asphalt
Fuel Oil
Asphalt
Fuel Oil
Diesel
Kerosene
Avtur
Gasoline
Liquified
Gas
500
Diesel
500
1,000
Kerosene
1,000
1,500
Avtur
1,500
2,000
Liquified
Gas
2,000
Gasoline
2,500
Production ('000 tonnes)
Production ('000 tonnes)
Production of Oil Products by Jordan

Petroleum Refinery
The increase in prices of oil in international markets has put the governments budget under
significant pressure due to the subsidies in place on fuel prices. As prices continued to rise, the
Government took action in recent years to reduce the subsidies in place by liberalising a number of
oil products, adjusting the fuel prices on a monthly basis to reflect the movement in international
prices. The table below highlights the prices in place at year-end for 2009 through to 2011, as well as
the price of fuel as of December 1st 2012.
Local Prices of Oil Products
Unit
Gasoline, Unleaded 90
Gasoline, Unleaded 95
Diesel
Kerosene
LPG
Fuel Oil (Industry)
Avtur (Local Companies)
Avtur (Foreign Companies)
Avtur (Charter Flights)
Fuel Oil (Bunkers)
Diesel (Bunkers)
Asphalt
Fils/Litre
Fils/Litre
Fils/Litre
Fils/Litre
JD/Cylinder
JD/Tonne
Fils/Litre
Fils/Litre
Fils/Litre
JD/Tonne
Fils/Litre
JD/Tonne
31 Dec 2009
485
575
445
445
6.5
370
423
428
443
370
445
398
Price as of
31 Dec 2010 31 Dec 2011
655
620
795
795
545
515
545
515
6.5
6.5
397
501
512
614
517
619
532
634
397
511
545
670
426
537
1 Dec 2012
800
1,015
685
685
10
475
621
626
641
501.5
685
509
20
In November 2012, with a bold but necessary move by the Government, the prices of the remaining
products were liberalised as estimates of the cost of the subsidies on the budget reached between
JOD650 million and JOD800 million for the year. The Minister of Energy and Mineral Resources
explained that with the rise in prices of crude oil, a mere USD1.00 increase in prices of crude oil from
current prices drives up the annual subsidy by an additional USD40.00 million. The subsidy on
unleaded 90-octane gasoline reached 12.1%, giving an estimated annual subsidy of JOD100.00 million,
while the subsidy rate on diesel and kerosene amounted to 28.2%, giving an annual subsidy of
JOD425.00 million. Meanwhile, the subsidy on liquefied petroleum gas cylinders reached 51.9%,
giving a subsidy value for the year of around JOD95.00 million.
Instead of subsidising the price of oil products directly, the Government is instead implementing a
direct cash aid plan to compensate for the hike in prices. Individuals of a household earning less than
JOD10,000 per year will receive JOD70 each as compensation for the subsidy removal, for up to six
family members. This is anticipated to reduce the cost of subsidising fuel prices to around JOD300
million per year. The Government hopes to demonstrate its commitment to fiscal consolidation and
secure loans and aid from the IMF, Western and Arab countries.
A further part of the liberalisation process, was the signing of an agreement in November, which
granted Total and Manaseer Group licenses to distribute fuel across the Kingdom alongside the
Jordan Petroleum Refinery. Prior to this agreement, the Jordan Petroleum Refinery was the sole
distributor of oil products. The agreement stipulates that each company has the exclusive right to
market one-third of the Kingdoms oil products, namely both types of unleaded gasoline, diesel,
kerosene and avtur for a period of three years.
The Government is considering other methods to rein in fuel consumption, such as putting into place
a system of alternate driving days, whereby cars would be permitted to drive on alternate days
depending on whether their number plate ends in an even or an odd number. This would lead to a
rapid drop in consumption and would help reduce the number of vehicles on the streets. Other ideas
include scheduled blackouts and reduced street lighting, to reduce electricity consumption.
3.3.2 Electricity and Prices
Key Electricity Statistics
Electricity Fuel Consumption (000 toe)
Power Stations and Nominal Capacities (MW)
Electrical Energy Generated (GWh)
Electrical Energy Consumption (GWh)
Electrical Energy Consumption Per Capita (KWh)
Total Electrical Fuel Consumption/total Fuel Consumption (%)
System Peak Demand in Jordan (MW)
System Peak Load Interconnected System (MW)
No. of Employees in the Electricity Sector
No. of Consumers (000 Consumers)
Av. Purchase Price from Generation Sector (Fils/kWh)
toe: tonnes of energy
kgoe: kilograms of energy
MW: Megawatts
GWh: Gegawatt hour
Source: Electricity Regulatory Commission
2007
3,035
2,300
12,999
10,559
1,845
42
2,160
2,130
7,806
1,263
31.9
2008
3,282
2,612
13,768
11,555
1,975
45
2,260
2,230
8,084
1,352
45.9
2009
3,441
2,666
14,208
11,993
2,006
44
2,330
2,300
8,273
1,426
39.2
2010
3,262
3,069
14,683
12,871
2,106
44
2,670
2,650
7,729
1,498
52.6
2011
3,186
3,420
14,593
13,572
2,171
42
2,680
2,660
7,841
1,574
112.2
21
Demand for electricity has been on the rise in recent years, not only as the population demographics
expand, but also as prices of oil derivatives soar, making the use of electricity for heating a more
affordable option. Furthermore, the decline in prices of airconditioning units in recent years has
made them significantly more affordable, heightening the use of electricity for cooling in the summer
months, as well as for heating in the winter. The expansion of Ammans boundaries has also
necessitated the extension of electricity and lighting to areas previously uncatered for.
Electrical Energy Generation, Consumption, and Import
Electricity Generated
16,000
Electricity Consumed
Electricity Imported
Electrical Energy (GWh)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2007
2008
2009
2010
2011
The growth in consumption of electricity has surpassed the growth in electricity generated, with the
consumption rising from 10,550GWh in 2007 to 13,572GWh, a compounded annual growth rate of
6.5%, versus a rise in generated electricity from 12,999GWh to 14,593GWh over the same period at a
compounded annual growth rate of 2.9%. On a per capita basis, electricity consumption reached
2,172kWh in 2011, up from 1,843kWh in 2007, and up 3.1% from the previous year.
Electricity Consumption by Sector
100%
Others
90%
80%
Water Pumping
70%
Agricultural
60%
50%
Industrial
40%
Commercial
30%
20%
Governmental
10%
Households
0%
2009
2010
2011
Some 98.7% of the generated electricity is produced through the interconnected system, with Central
Electricity Generating Company (CEGCO), Samra Electric Power Generating Company (SEPGCO)
and AES - Jordan producing 55.2%, 24.2% and 15.5% of the total generated electicity in 2011. Electricity
22

is generated primarily through steam units, gas turbines running on natural gas, and the combined
cycle.
Energy Generated According to Producer
(in GWh)
2008
2009
1- Interconnected
13,551 13,995
System
CEGCO
8,851
8.009
SEPGCO
3,736
3,629
AES
826
2,286
QEPCO
King Talal Dam
15
13
Potash Company
64
Indo - Jordan Chemicals
59
58
2 - Large Industries
Total
14,477
14,406
7,655
3,467
3,238
15
36
66
8,051
3,534
2,267
463
13
11
66
213
206
187
13,768
14,208
14,683
14,593
534
13
363
20
446
224
1,458
281
14,316
14,591
15,353
16,331
318
139
58
86
13,998
14,452
15,295
16,245
Exported
Total Available Energy
2011
218
Imported from Egypt

Imported from Syria
Grand Total
2010
Electrical Energy Generated by Type of

Generation
Others
0.7%
Steam
Units
46.7%
Combined
Cycle
29.1%
Gas
Turbines /
Diesel
0.5%
Gas
Turbines /
Natural
Gas
23.0%
Electricity system losses have hovered over the past decade at above 17%, reaching as high as 19.1% in
2007. However, in 2010 and 2011, the losses as a percentage of generated electricity have declined to
15.8% and 16.5%, respectively, with the bulk of the losses arising on distribution.
3.3.3 System Peak Demand
The increase in number of subscribers, particularly in terms of residential users as a result of a
growing population, expansion of city boundaries, and the evolution of the residential compound
phenomenon in Jordan, has pushed up electricity demand in recent years. Moreover, the increasing
hot summers in Jordan, and the soaring price of fuel for heating has led to a surge in usage of airconditioners both for cooling and for heating, thereby applying substantial additional pressure on
electricity supply.
System Peak Demand
System Peak Demand in Jordan
System Peak Load Interconnected System
System Peak Demand (MW)
3000
2500
2000
1500
1000
500
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
23

The system peak demand began rising in 2004 through to 2008 after which it began to level off,
accompanying the deceleration in growth in the construction and real estate sectors, and
corresponding to poor economic conditions and financial hardship. Year 2010 saw the peak load rise
sharply, and in 2011 only marginally more.
The high percentage of fuel consumption utilised in the generation of electricity translates into a
positive relationship between fuel prices in the international markets and the cost of electricity
generation. The hike in oil prices in recent years has increased the cost of generating electricity, and
this has been passed, in part, on to the distributors, as evident in the bulk supply tariff at which the
three distribution companies purchase electricity from NEPCO.
Transmission Tariff Development (Fils/kWh)
Distribution Companies
Night Energy
JEPCO
EDCO
IDECO
Day Energy
JEPCO
EDCO
IDECO
Max. Load
(JOD/kW/Mnth)
From
01/01/2009
to
15/01/2010
From
16/01/2010
to
30/04/2011
From
01/05/2011
to
30/06/2011
From
01/07/2011
to
31/12/2011
From
01/01/2012
to
28/05/2012
From
29/05/2012
to
04/06/2012
From
05/06/2012
to Date
35.76
26.10
28.11
36.62
25.81
29.04
36.62
28.53
31.84
45.14
38.87
39.05
45.14
36.65
33.92
49.52
43.15
37.19
55.29
46.58
39.77
45.81
36.15
38.16
46.67
35.86
39.09
46.67
38.58
41.89
55.19
48.92
49.10
55.19
46.70
43.97
59.57
53.20
47.24
65.34
56.63
49.82
2.98
2.98
2.98
2.98
2.98
2.98
2.98
50.00
66.00
50.00
66.00
66.00
82.00
66.00
82.00
164.00
220.00
164.00
220.00
2.98
2.98
2.98
2.98
2.98
2.98
50.00
66.00
50.00
66.00
66.00
82.00
66.00
82.00
66.00
82.00
76.00
94.00
2.98
2.98
2.98
2.98
2.98
2.98
Principal Consumers (Mining & Quarrying)

Night Energy
49.00
Day Energy
65.00
Maximum Load
2.98
(JOD/kW/Mnth)
Principal Consumers (Other Industries)
Night Energy
49.00
Day Energy
65.00
Maximum Load
2.98
(JOD/kW/Mnth)
Source: Electric Regulatory Commission
In 2011, the average purchase price of electricity for NEPCO was 112.2 fils/kWh compared to an
average selling price of 52.6 fils/kWh. This meant that the Company incurred a loss of 59.6 fils/kWh,
giving a total loss of JOD1,007 million for the 2011 fiscal year.
The Government is considering raising electricity prices by an average of 6% - 8% in a bid to close
NEPCOs budget deficit over the next eight years and to reduce the annual cost of energy subsidies.
Other proposals to rein in energy costs include reducing electricity use by cutting street lighting by
half on major roads, and blacking out roads that have little traffic. The Government is also
considering restricting the number of hours of lighting in public institutions, as well as other
electricity consuming activities. A last resort is scheduled blackouts.
24

Distribution Tariff Development (Fils/kWh)
From
09/07/2005
to
13/03/2008
From
14/03/2008
to
15/01/2010
From
16/01/2010
to
30/06/2011
From
01/07/2011
to
28/05/2012
From
29/05/2012
to
04/06/2012
From
05/06/2012
to Date
Standard Domestic Tariff:

From 1-160 kWh/Month
More than 1000 kWh/Month
31.0
59.0
67.0
82.0
82.0
82.0
82.0
32.0
71.0
85.0
113.0
113.0
113.0
113.0
33.0
72.0
86.0
114.0
114.0
114.0
114.0
33.0
72.0
86.0
114.0
114.0
135.0
174.0
33.0
72.0
86.0
114.0
114.0
135.0
174.0
33.0
72.0
86.0
114.0
141.0
168.0
235.0
TV and Broadcasting
61.0
86.0
87.0
98.0
98.0
122.0
Commercial Sector
63.0
63.0
86.0
86.0
87.0
87.0
91.0
106.0
91.0
265.0
91.0
265.0
Banking Sector
86.0
86.0
86.0
86.0
87.0
87.0
91.0
106.0
227.0
265.0
227.0
265.0
Telecommunications Sector
86.0
86.0
86.0
86.0
87.0
87.0
91.0
106.0
227.0
265.0
227.0
265.0
Small Industrial Sector
41.0
49.0
50.0
57.0
57.0
57.0
Medium Industrial Sector

Night Energy
Day Energy
Maximum Load (JOD/kW/Month)
28.0
38.0
3.05
36.0
46.0
3.79
37.0
47.0
3.79
50.0
60.0
3.79
50.0
60.0
3.79
53.0
63.0
3.79
Agriculture (Flat Tariff)

Three Part Tariff for Agriculture:
Night Energy
Day Energy
31.0
47.0
48.0
60.0
60.0
60.0
30.0
20.0
3.05
36.0
46.0
3.79
37.0
47.0
3.79
49.0
59.0
3.79
49.0
59.0
3.79
49.0
59.0
3.79
Water Pumping
40.0
41.0
42.0
54.0
66.0
66.0
Hotels (Flat Tariff)

Three Part Tariff for Hotels:
Night Energy
Day Energy
60.0
86.0
87.0
98.0
127.0
127.0
45.0
56.0
3.05
70.0
81.0
3.79
71.0
82.0
3.79
82.0
93.0
3.79
102.0
116.0
3.79
102.0
116.0
3.79
Ports Sector
46.6
58.0
59.0
91.0
112.0
112.0
Streets Lighting
30.0
51.0
52.0
64.0
80.0
80.0
Jordan Armed Forces
67.0
81.0
82.0
82.0
82.0
82.0
Mixed Tariff Commercial / Agricultural
52.3
73.0
74.0
80.7
80.7
80.7
Minimum Charge for Domestic Consumers

(JOD / Month)
Minimum Charge for Other Consumers (JOD /
Month)
1.00
1.00
1.00
1.00
1.00
1.00
1.25
1.25
1.25
1.25
1.25
1.25
25
4.0 MAJOR SECTOR PLAYERS

4.1 Ministry of Energy and Mineral Resources
The energy sector in Jordan is overseen by the Ministry of Energy and Mineral Resources, which is
responsible for the regulation of the sector, compiling and implementing policies, providing energy
in all its forms at the lowest possible costs consistently and according to best standards, developing
and utilising any local sources of energy, creating opportunities for the private sector to invest in the
energy sector, improve the efficiency of the energy provided, as well as developing renewable energy
sources to relieve the burden of energy production and import off the government.
4.2 Petroleum, Gas and Mineral Ores
These institutions prospect for petroleum and mineral ores in the Kingdom, as well as refine crude oil
and sell oil derivatives.
4.2.1 Natural Resources Authority (NRA)
The Natural Resources Authority overseas the prospecting for mineral resources, the conducting of
geological and other surveys, as well as issuing licenses for mining and exploration.
4.2.2 National Petroleum Refinery (NPCO)
The National Petroleum Refinery is government-owned public shareholding companies which
explores for, and produces, oil and gas in its concession area in the north-eastern area of the
Kingdom. The Companys concession came into effect in 1995 and has a period of 50 years. The
concession area includes the Risha Gas Field area.
4.2.3 Jordan Petroleum Refinery (JPRCO, ticker symbol: JOPT)
Jordan Petroleum Refinery is a public shareholding company established in 1956. The Company is
responsible for the refining and production of petroleum derivatives, as well as the transportation and
distribution of these derivatives to fuel stations across the Kingdom. In 1958, the Company had been
granted a 50-year concession which expired on March 2nd 2008, and was extended several times.
4.2.4 The Jordanian Egyptian Fajer Company
The Jordanian Egyptian Fajer Company is a limited liability company operating under a license
agreement to build, own and operate the natural gas pipeline from Aqaba to the north of the
Kingdom, and transport natural gas provided by Egypt from Aqaba via the pipeline to sell to power
plants and heavy industries.
4.2.5 Gas Stations
Gas stations are privately owned, and sell oil derivatives directly to the citizens. Two such stations
have become more prominent this year; Total and Manaseer Group. In November 2012, the two
companies signed a distribution agreement allowing them to each distribute one-third of the
Kingdoms oil products across the Kingdom.
4.3 Electricity
4.3.1 Electricity Regulatory Commission
The electricity segment of the market is monitored by the Electricity Regulatory Commission, which
is responsible for setting electricity prices, subscription fees and other related costs, issuing licenses
26

to electricity companies operating within the sector, as well as monitoring their compliance with
conditions set out in these licenses.
As illustrated below, the generation of electricity takes place via a number of producers, primarily
comprising of the Central Electricity Generating Company (CEGCO), the Samra Electric Power
Generation Company (SEPGCO) and independent power producers.
Ministry of Energy and

Mineral Resources
Electricity Regulatory
Commission
Amman East Power Plant (AES)

(Generation)
Qatrana Electric Power Company

(QEPCO)
(Generation)
International Power Grids

(Power Sharing)
Irbid District Electricity Company

(IDECO or "IREL")
(Distribution)
Consumers
Samra Electric Power Generating

Company (SEPGCO)
(Generation)
Jordan Electric Power Company

(JEPCO or "JOEP")
(Distribution)
National Electric Power Company (NEPCO)
(National Transmission Grid)
Central Electricity Generating

Company (CEGCO)
(Generation)
Electricity Distribution Company

(EDCO)
(Distribution)
Large Consumers
4.3.2 Central Electricity Generating Company (CEGCO)

The Central Electricity Generating Company was registered in 1998 as a public shareholding
company, and commenced operations in 1999, generating electrical power from a number of sources
and supplying it to the National Electric Power Company (NEPCO) in charge of transmitting the
energy to the distributors. The supply of electricity to NEPCO is governed by a power purchase
agreement signed between the two parties.
CEGCO was privatised during 2007 after the Government sold a 51% share of the Company to Enara
Energy, a company established by Jordan Dubai Capital. A further 9% was sold to the Social Security
Corporation, and the remaining 40% was retained by the Government.
4.3.3 Samra Electric Power Generating Company (SEPGCO)
Samra Electric Power Generating Company was established more recently as a private shareholding
company fully-owned by the Government to work hand-in-hand with CEGCO in generating electrical
power. SEPGCO was established with a paid-up capital of JD 50 million, and its first completed phase
27

of the Samra power station has the capacity to generate some 25% of the total generated electricity in
the Kingdom.
4.3.4 Amman East Power Plant (AES)
Amman East Power Plant is a private company co-owned by the American Company AES and
MITSUI of Japan. The company was established in February 2009 representing the first private
project in the Kingdom in the generation of electricity. The power plant is located in East Amman /
Al Manakhir, and has an installed capacity of 370MW.
4.3.5 Al Qatraneh Electric Power Company
Another private company called Al Qatraneh Electric Power Company was established in 2010 with
an installed capacity of 373MW by the Korean Company KEPCO and the Saudi Company Xenel.
4.3.6 National Electric Power Company (NEPCO)
The generated electricity is purchased by the National Electric Power Company and is then sold on to
the energy distributors and large consumers. NEPCO manages the Kingdoms electrical transmission
grid and the process of transmitting the electricity. It is also responsible for the import and export of
electrical power, in addition to the purchase of natural gas for supply to the power generating
segment of the industry.
Distribution, meanwhile, is executed by three companies, each of which is responsible for supplying
electricity in different areas of the Kingdom:
4.3.7 Jordan Electric Power Company (JEPCO, ticker symbol: JOEP)
Jordan Electric Power Company is a public shareholding company that distributes electricity in
Amman, Zarqa, Al-Salt, Madaba, and Balqa, excluding the Central Jordan Valley. JOEP was granted a
50-year concession in 1962 that recently expired. The Company is currently operating under a
temporary renewable 6-month license under terms similar to those applicable under the concession
agreement.
4.3.8 Irbid District Electricity Company (IDECO, ticker symbol: IREL)
Irbid District Electricity Company distributes electricity in Irbid, Mafraq, Jarash, Ajloun and some
parts of the Balqa governorate. IDECOs 50-year concession expired on February 15th 2011, and is
currently operating under a distribution license. IDECO was privatised in 2008 following the
Governments sale of a 55.4% holding to Kingdom Electricity Company.
4.3.9 Electricity Distribution Company (EDCO)
Also privatised in 2008 was the Electricity Distribution Company, when Kingdom Electricity
Company acquired a 100% stake in the Company. EDCO services the southern, central and eastern
parts of the Kingdom. EDCO operates under a distribution license.
4.4 Nuclear Energy

4.4.1 The Commission for Regulating Radiation and Nuclear Activity
The Commission was established in 2007, replacing the Jordanian Nuclear Energy Commission which
had been established six years prior. The goal of the Commission is to monitor the use of nuclear
power to ensure the health and safety of the population and surrounding environment from the use
of radiation and nuclear power.
28

4.4.2 The Jordan Atomic Energy Commission
The Jordan Atomic Energy Commission was established in 2008 to establish the usage of nuclear
power for the generation of electricity, desalination of water, and for other peaceful uses.
4.5 The Bio-Gas Company
The Bio-Gas Company is a company jointly owned by CEGCO and the Greater Amman Municipality,
established in 2000 to utilise methane gas extracted from organic waste to generate electricity. The
Companys installed capacity is 3.5MW.
4.6 Promoting Renewable Energy and Energy Efficiency Fund
The Fund was established to support the improvement of energy consumption efficiency studies as
well as provide loan guarantees for energy efficiency and renewable energy projects.
29
5.0 SHARE PERFORMANCE AND VALUATION

The weak economic conditions have taken their toll on the overall stock market, in terms of
excessive drops in stock prices and poor trading activity. For the energy sector, in spite of good
fundamentals for the commodities themselves in terms of rising demand and increased prices, poor
market liquidity and weak consumer confidence have resulted in an overall slump in prices. For the
Jordan Petroleum Refinery, the recovery of oil prices internationally reflected on the stocks share
price in 2011, registering a 12.4% increase. However, in 2012, the stock slumped by 5.1% as trading
dwindled. For Jordan Electric Company (JOEP), the stock was hit harder in 2011, declining by 16.5%
compared to a 7.8% decline in 2012 to date. Irbid District Electricity Companys (IREL) stock,
however, was the most significantly affected by the poor trading activities, with its share price falling
by a whopping 29.2% and 14.5% in 2011 and 2012, respectively.
Share Price Performance
2010
20.00
2011
2012*
Price (JOD)
15.00
10.00
5.00
0.00
JOPT
JOEP
IREL
The chart below illustrates the regression of the P/BV for the four listed health sector companies,
based on current price and book value per their most recently issued financial results, against their
return on equity (ROE) ratio, using annualised profits. Based on the particularly high R2 for the line
of best fit, it would appear that the regression plotted indicates a strong correlation between the
return on equity for these companies and their P/BV. A strong word of caution, however, is that the
low number of companies included in the regression may cause an invalid skew of the line of best fit.
Assuming that the relationship plotted is accurate for the average, the chart can highlight stocks that
are over- and under-priced based on their position on the chart. The companies that plot above the
line can be deemed relatively overvalued, while those that plot below the line are undervalued.
Return on Equity (ROE)
Regression of P/BV against ROE

50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
y = 0.1304x - 0.0912
R = 0.7011
IREL
JOPT
JOEP
0.50
1.00
1.50
2.00
2.50
P/BV (times)
3.00
3.50
4.00
4.50
30
6.0 ENERGY SECTOR INDEX PERFORMANCE

Energy Sector
General Index
2,800
11/2012
09/2012
07/2012
05/2012
03/2012
01/2012
1,600
11/2011
2,800
09/2011
1,800
07/2011
3,200
05/2011
2,000
03/2011
3,600
01/2011
2,200
11/2010
4,000
09/2010
2,400
07/2010
4,400
05/2010
2,600
03/2010
4,800
01/2010
Energy Sector Index (Points)
5,200
Free-Float General Index (Points)
Energy Sector Index Performance
The sky-rocketing prices of fuel prior to the financial crisis and economic slowdown was reflected on
the energy sector index, which rose to a high of 10,785.7 points in 2008, up 56.4% since the start of
the year. The market overall also experienced a strong upturn, rising to a peak of 5,043.7 points,
registering a 27.1% increase since the start of the year. Both indices dropped sharply during the
second half of 2008, closing at 3,863.5 points and 2,758.4 points, respectively, down by 64.2% and
45.3% from their peaks that year, and down 17.8% and 24.9% since the start of the year.
In 2009, the General Index continued to struggle, as bed news on the global economic front
continued to stream in. On the other hand, while declining prices of oil in the international market
caused an overall decline in the price of Jordan Petroleum Refinery (JOPT), which dropped from
JOD6.86 at the start of the year to JOD6.80 by year end, the electricity sector was thriving; Jordan
Electric Power (JOEP) saw its share price rise by 36.7% over the year, while Irbid District Electricity
Companys (IREL) stock rose to JOD9.00 by year end from JOD6.99, a positive change of 28.8%.
Neither index fared well during the first eight months of 2010, inspite of a brief recovery by the
General Index in early April. By August 30th, the Energy Sector Index had slumped by 10.6%, while the
General Index recorded a slightly higher 11.2% drop. In the final quarter of the year, however, both
indices picked up, closing at 4,414.8 points from 4,795.5 points at the start of the year for the Energy
Sector, and 2,373.6 points from 2,533.5 points for the General Index, still recording year-on-year
declines of 7.9% and 6.3%, respectively.
The market continued to suffer in 2011, but to a lesser extent than the energy sector which dropped to
a low of 3,024.0 on October 10th. However, while the General Index continued on its downward trend,
closing the year at 1,995.1 points, the Energy Sector Index managed a tremendous recovery in October
and November, on the back of rising trading volumes on the Jordan Petroleum Refinery stock which
pushed up prices from a low of JOD3.84 on October 3rd to a high of JOD6.28 on December 13th,
coupled with a rise in the price of Jordan Electric Power (JOEP) from a low of JOD2.53 on October 10th
to a high of JOD3.69 on November 15th. The two stocks combined to buoy the sector index back up
above the 4,000 point mark, ending the year at 4,075.1 points, albeit still down by 7.7% for the year.
Nonetheless, this compares favourably to the performance of the General Index, which registered a
year-on-year decline of 15.9%.
31

The first quarter of 2012 saw both indices trading relatively horizontally with a marginal upward
trend, as volumes in the market remain low. During April, however, both indices began to drop, more
so for the energy sector than the overall market. By June 30th, the Energy Sector Index stood at 3,623.9
points, down 11.1% year-to-date compared to a 5.7% decline in the overall market. The combined 9.5%
and 15.1% declines in prices of the Jordan Petroleum Refinery (JOPT) and Jordan Electric Power stocks
over the six months were the drivers of this slump. The third quarter of the year was more promising,
with the Energy Sector Index following an upward trend. The Index reached a level of 4,110.7 points
on November 1st before declining to close at 3,870.8 points as of the date of this report.
In terms of trading activity, the table below highlights the values and volumes of trading for each of
the energy sectors traded stocks. As is evident, trading activity has been sluggish both in terms of
number of shares traded and values of shares traded, with 2012 faring worse than 2011, with the
exception of Irbid District Electricity Company (IREL), whose trading picked up slightly compared to
2011, but still evidently not very liquid, with a daily average number of transactions on its stock of 4
over a small number of shares.
Sector Trading Statistics
Value
Traded
(JOD)
Daily Average
# of
Transactions
# of Shares
Value
Traded
(JOD)
# of
Transactions
# of Shares
JOPT
2011
87,490,273
32,077
16,721,965
355,652
130
67,975
2012*
48,565,255
22,370
8,633,188
204,056
94
36,274
2011
20,373,106
9,957
6,016,836
82,818
40
24,459
2012*
17,756,712
6,757
5,464,889
74,923
29
23,059
718,318
708
46,345
4,128
266
1,087,907
862
96,088
6,146
543
JOEP
IREL
2011
2012*
*Up to the date of this report
32

7.0 LISTED ENERGY COMPANIES
7.1 Jordan Petroleum Refinery (JOPT)
Jordan Petroleum Refinery was established in 1956 as a public limited company with a paid-up capital
of JOD4.00 million, and has since raised the capital twice to reach a current level of JOD32.00 million.
The Company has, in a recent extraordinary General Assembly meeting, resolved to raise the capital of
the Company to JOD40.00 million through the capitalisation of JOD8.00 million and distribution of
25% stock dividends to existing shareholders. The Companys objectives include the refining and
production of petroleum derivatives, as well as the transportation and distribution of these derivatives
to fuel stations across the Kingdom. The Company also owns four factories for the production of LPG
cylinders, lube-oils, containers, and asphalt drums. In 1958, the Company had been granted a 50-year
concession which expired on March 2nd 2008. As a result of the termination of the concession period,
the Company established two fully-owned subsidiary companies; the Jordan Liquid Gas Manufacturing
and Packing Company, and the Jordan Lube-Oil Manufacturing Company.
Stock Highlights
Ticker Symbol
Share Price**
Year-to-Date Change**
52-Week High / Low**
Market Capitalisation**
*For 2011
**As of the date of this Report
JOPT
JOD5.59
(5.1%)
JOD6.28 / JOD5.09
JOD178,880,000
Value Traded (JOD)*

Volume Traded*
Average Daily Value Traded (JOD)*
Average Daily Volume Traded*
Turnover Ratio*
87,490,275
16,721,965
355,652
67,975
52.26
JOPT Stock Performance
10/2012
08/2012
06/2012
04/2012
0
02/2012
0.60
12/2011
100000
10/2011
1.60
08/2011
200000
06/2011
2.60
04/2011
300000
02/2011
3.60
12/2010
400000
10/2010
4.60
08/2010
500000
06/2010
5.60
04/2010
600000
02/2010
6.60
Number of Shares
Share Price
700000
12/2009
Price (JOD)
Trading Volume
7.60
Financial Indicators
Total Assets (JOD)
Equity Attributable to Shareholders of the Bank (JOD)
Sales (JOD)
Gross Profit (JOD)
Operating Profit (JOD)
Profit after Tax (JOD)
EPS (JOD)
P/E (times)
P/BV (times)
ROA (%)
ROE (%)
N/A: Not available / Not Applicable
2011
1,286,683,227
86,581,400
3,496,622,509
157,633,141
161,904,148
21,853,669
0.683
8.6x
2.2x
2.1%
27.1%
H1 2012
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
33

7.2 Jordan Electric Power (JOEP)
Jordan Electric Power Company was established in 1938 to supply Jordans capital with electricity. In
1947 it received its first concession, and in 1962, following the Companys merger with the Central
Electric Company of Jordan, JOEP was granted a second concession for a period of fifty years. The
concession granted JOEP the right to generate, transmit and distribute electrical power in the areas of
Amman, Zarqa, Al-Salt and Madaba. This concession expired on November 22nd 2012 and the General
Assembly of the Company has voted in favour of not renewing this concession agreement and agreed
that the Company should apply for a distribution license. By the date of expiry of the concession, no
final agreement with the Government had been made, but a temporary renewable 6-month license
was granted to the Company that entailed terms and conditions in line with those that had been
applicable under the concession. The Company is currently raising its capital from 75.6 million
shares/JOD to 100.00 million shares/JOD.
Stock Highlights
Ticker Symbol
Share Price**
*For 2011
JOEP
JOD3.18
(7.8%)
JOD3.66 / JOD2.70
JOD240,408,000
Value Traded (JOD)*

Volume Traded*
Turnover Ratio*
20,373,108
6,016,836
82,818
24,459
7.96
JOEP Stock Performance
10/2012
08/2012
06/2012
0
04/2012
200000
0.60
02/2012
1.10
12/2011
400000
10/2011
1.60
08/2011
600000
06/2011
2.10
04/2011
800000
02/2011
2.60
12/2010
1000000
10/2010
1200000
3.10
08/2010
3.60
06/2010
1400000
04/2010
4.10
02/2010
1600000
Number of Shares
Share Price
4.60
12/2009
Price (JOD)
Trading Volume
Total Assets (JOD)
Sales (JOD)
Gross Profit (JOD)
EPS (JOD)
P/E (times)
P/BV (times)
ROA (%)
ROE (%)
*Based on Annualised Profits
2011
559,801,412
107,016,801
569,511,063
56,744,207
39,280,341
9,482,075
0.125
27.6x
2.4x
1.8%
9.0%
9M 2012
633,011,559
103,346,484
531,522,490
54,623,819
40,667,009
8,425,683
0.111
19.3x*
2.1x
1.9%*
10.7%*
34

7.3 Irbid District Electricity Company (IREL)
Irbid District Electricity Company was established in 1957, and was granted a concession in 1961
entitling it to generate, transmit and distribute electrical energy across the areas covered by the
concession, which include Irbid, Jarash, Ajloun, as well as certain areas of Balqa. The Company was
privatised in 2008 when the Government of Jordan sold its 55.4% stake to the Kingdom Electricity
Company, and on June 30th 2008, the Company obtained a 25-year license for the distribution of
electricity. The Companys paid-up capital was raised during 2012 from 4.00 million shares/JOD to
6.00 million shares/JOD.
Stock Highlights
Ticker Symbol
Share Price**
*For 2011
IREL
JOD10.00
(14.5%)
JOD14.99 / JOD9.47
JOD60,000,000
Value Traded (JOD)*

Volume Traded*
Turnover Ratio*
718,318
46,345
4,128
266
1.16
IREL Stock Performance
10/2012
08/2012
06/2012
04/2012
02/2012
12/2011
10/2011
0
08/2011
0.60
06/2011
5000
04/2011
5.60
02/2011
10000
12/2010
10.60
10/2010
15000
08/2010
15.60
06/2010
20000
04/2010
20.60
02/2010
25000
Number of Shares
Share Price
25.60
12/2009
Price (JOD)
Trading Volume
Total Assets (JOD)
Sales (JOD)
Gross Profit (JOD)
EPS (JOD)
P/E (times)
P/BV (times)
ROA (%)
ROE (%)
*Based on Annualised Profits
2011
138,317,374
14,477,435
131,443,167
18,566,427
3,058,815
4,208,596
1.052
11.1x
3.2x
3.2%
28.5%
6M 2012
146,002,805
14,255,888
68,056,347
11,917,373
2,857,149
3,378,453
0.565
8.5x*
4.0x
4.8%*
47.0%*
35

Energy Sector Report 12-12-2012

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Energy Sector Report 12-12-2012

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The Jordanian Energy

December 12th 2012

The Energy Sector of Jordan

Global Energy Sector Overview

The Energy Sector in Jordan

Major Sector Players

Share Performance and Valuation

Energy Sector Index Performance

Traded Energy Service Companies

The Energy Sector of Jordan

1.0 EXECUTIVE SUMMARY

Oil Shale Exploration

Source: Ministry of Energy and Mineral Resources

Energy Mix - 2020

Imported Oil Shale,

Source: Ministry of Energy and Mineral Resources

The Energy Sector of Jordan

The Energy Sector of Jordan

The Energy Sector of Jordan

2.0 GLOBAL ENERGY SECTOR OVERVIEW

World Consumption by Region - 2011

Energy Consumption ( Mtoe)

The Energy Sector of Jordan

World Production by Region - 2011

The Energy Sector of Jordan

Source: World Bank Pink Sheets

The Energy Sector of Jordan

2.2 Natural Gas

The Energy Sector of Jordan

Liquefied Natural Gas, Japan

Source: World Bank Pink Sheets

The Energy Sector of Jordan

Coal, South African

Source: World Bank Pink Sheets

The Energy Sector of Jordan

2.5 Renewable Energy

The Energy Sector of Jordan

Share of Renewables in Electricity Production

Share of Renewables in Primary Consumption

Pacific Africa Middle

Europe America CIS

Pacific Africa Middle

2.6 Global Energy Outlook

The Energy Sector of Jordan

3.0 THE ENERGY SECTOR IN JORDAN

3.2 Primary Energy

Crude Oil and Products

The Energy Sector of Jordan

Source: Ministry of Energy and Mineral Resources

Source: Ministry of Energy and Mineral Resources

The Energy Sector of Jordan

The Energy Sector of Jordan

3.2.1 Crude Oil and Oil Products

The Energy Sector of Jordan

Source: Central Bank of Jordan

The Energy Sector of Jordan

3.3 Final Energy Consumption

Final Energy Consumption

Electricity Solar Energy

Source: Ministry of Energy and Mineral Resources

The Energy Sector of Jordan

Production ('000 tonnes)

Production ('000 tonnes)

Production of Oil Products by Jordan