18 Apr 2013
Enefit Jordan receives proposals to construct Jordan’s First Oil Shale Fired Power Plant
Enefit Jordan has announced that in response to an EPC tender issued by the company last year, 6 internationally renowned engineering and construction companies have submitted proposals to construct the first oil shale fired power plant in the Kingdom. Enefit will now proceed to evaluate the submitted bids to start more detailed negotiations with the preferred contractors.
The six companies/consortiums that submitted bids are: Alstom/Daewoo E&C (France/Korea), Hyundai E&C/LG International (Korea), Samsung Engineering (Korea), Posco/Daewoo International (Korea), China Machinery Engineering Corporation (China), and Guangdong Power (China).
Andres Anijalg, Project Director for Enefit Jordan, stated, “The bids received today mark another important step in our steady progress towards establishing a source of power generation for Jordan that will be wholly reliant on the Kingdom’s own abundant deposits of oil shale. Due to the importance of this project to Jordan and the fact that it is the first of its kind in the Middle East, the tender we issued has generated significant global interest. We will now proceed with evaluating the bids received and selecting the right contractor that will enable us to maximise the Kingdom’s benefit from this project.”
Anijalg continued to say, “According to our project timeline, the construction of the plant is to commence by next year. In order for us to meet that objective and for Jordan to start benefitting from its oil shale resources as soon as possible, we will now need strong support and commitment from the Jordan government authorities.”
The advances in oil shale technology over the last decade have led to an increasing number of countries around the world turning to oil shale as a means to meet their domestic energy requirements and reduce their reliance on costly imported fuels.
According to geological surveys, Jordan possesses one of the largest oil shale reserves in the world with total deposits estimated at 40 to 70 billion tonnes. Using the most advanced and clean oil shale production technology available, Enefit´s proposed power plant in Attarat um Ghudran is in line with the Kingdom’s national energy strategy that aims to increase Jordan’s energy independence and security by leveraging local natural resources such as oil shale.
The power plant is scheduled to start generating electricity for local consumption by 2017. It will have a capacity of approximately 500MW and is expected to reduce the Kingdom’s expenditure on the import of oil products for power generation by more than 350 million Jordanian Dinars a year, in addition to creating thousands of jobs and providing wider economic benefits.
Enefit is an international trademark of Eesti Energia Group, representing the business operations in Jordan, the State of Utah in the United States, Latvia and Lithuania. Enefit has a 65% majority stake in the development project in Jordan. Eesti Energia’s strategic partner in the development project is one of Asia’s leading energy companies, YTL Power International Berhad (YTLPI), with a 30% stake. A 5% stake in the project is held by Enefit’s Jordanian partner, Near East Investment.