May 2016

Jordan Oil Shale Project Adds Major Equity Partner

6 May 2016

May 6, 2016 – Attarat Power Company (APCO) announced that its shareholders Eesti Energia (Enefit American Oil’s parent company), YTL Power International Berhad (YTL) and Near East Investment (NEI) have signed an agreement to introduce a new shareholder Yudean Group (Yudean) to the project to develop an oil shale fired 554 MW (gross) power plant and mine in Jordan. Yudean has agreed to purchase 45% of the shares and YTL a further 15% of the shares with Eesti Energia stepping down to 10% and Near East Investments exiting the project. Following the completion of the share transfers which is subject to achieving full financial close APCO will be indirectly owned by Eesti Energia AS of Estonia (10%), YTL Power International Bhd of Malaysia (45%) and Yudean Group of China (45%).

 

Hando Sutter, Chairman of the Management Board of Eesti Energia: “Estonia has 100 years of experience utilizing oil shale and we are happy that Jordan is about to start utilizing its abundant energy resource. We are one step closer towards establishing Jordan´s first oil shale fired power plant. We now hope to get final approvals for the loan guarantees from Sinosure and Chinese Government in order to finally conclude the financing and proceed with construction.”

 

Dato´ Yeoh Seok Hong, Executive Director of YTL Power International Berhad: “YTL Power is very pleased to increase our stake to 45% and welcome Yudean to be our partner and jointly lead the development of this milestone project and to support the Jordanian Government in furthering its policy of energy independence. The 554 MW oil shale fired power plant will cover a substantial portion of Jordan´s energy need and reduce the Kingdom´s import of oil products for power generation. The sponsors’ combined extensive experience in power generation and mining will drive this project to fruition, beginning a process for Jordan to achieve cost effective and reliable energy independence.”

 

Huang Zhenhai, Director and General Manager of Yudean Group: “We are glad to join a project of strategic importance for Jordan that will provide a sustainable, viable and much needed solution to the Kingdom’s current and long term energy challenges.”

 

Earlier this year APCO signed agreements with Bank of China (BoC) and Industrial and Commercial Bank of China (ICBC) to provide debt funding for the project. The USD 1.6 billion debt financing will be provided on the basis of support by China Export & Credit Insurance Corporation (Sinosure). The sponsors continue working on a number of conditions precedent before full financial close can be achieved, including receiving final approvals for the export credit insurance from Sinosure and the Government of China. The power plant is scheduled to start generating electricity for local consumption in 2019.

 

Pictures of the signing are here.

 

Notes to the Editor:

Attarat Power Company (APCO) is developing a nominal 554MW (gross) oil shale fired power generation project. It has signed a 30-year Power Purchase Agreement (PPA) with the National Electric Power Company (NEPCO), the Jordan state-owned utility, for the entire electrical capacity and enrergy of the power plant, with an attractive option for NEPCO to extend the PPA to 40 years. In 2013, Guangdong Power Engineering Corporation was selected to lead the engineering, procurement and construction (EPC) of the 554MW (gross) mine mouth oil shale fired power plant under a fixed price turnkey contract. Foster Wheeler will provide the circulating fluidised bed boiler island, Siemens on the steam turbine generator and Worley Parsons on the plant design. The plant will be based at the Attarat um Ghudran oil shale deposit approximately 100km south east of Amman.

 

YTL Power International Berhad (YTLPI) is listed on Bursa Malaysia. YTLPI owns and operates some 5,100MW of gas, oil and coal-fired power generation plants in Malaysia, Singapore and Indonesia and is an active trader of oil products in the Singapore market where it has approximately 1 million m3 of storage capacity. YTLPI also owns 100% of Wessex Water Services Limited, a water and sewerage services company that serves the south west of England in the UK and a one-third stake in ElectraNet Pty. Ltd.. which owns and operates the electricity transmission network in South Australia.

 

Yudean is a Chinese state-owned utility which owns and operates over 29,000 MW of power generation capacity with ca. 13,000 employees. Yudean is an experienced independent power producer (IPP) and has significant coal mining operations both in China and Australia. Yudean is owned by Guangdong Province (76%) and China Huaneng Group (24%).

 

Eesti Energia is an international energy company that operates in the unified electricity market of the Baltic and Nordic countries. Its sole shareholder is the Republic of Estonia. Eesti Energia owns and operates some 2,000MW of direct oil shale fired mine-mouth power generation capacity and supplies electricity to some 450,000 customers. Eesti Energia is also one of the largest producers of (kerogen) shale oil in the world and has been engaged in oil shale processing for 35 years. More than 1 billion tons of oil shale has been mined, over 200 million barrels of oil have been produced and more than 600TWh of electricity has been produced from oil shale in Estonia to date.