| AMMAN, March 16
AMMAN, March 16 Attarat Power Co (APCO), a
Jordanian affiliate of Estonian-owned Enefit, announced on
Thursday that its plan to build a $2.1 billion oil shale-fired
power plant in Jordan had secured financing from a consortium of
The financial-closure agreement will allow the company to
start construction of the 470-megawatt plant, which is scheduled
to begin generating electricity for local consumption in
mid-2020, a company official said.
Oil shale is a sedimentary rock that can be burned directly
in furnaces to generate electricity.
The move comes after the power utility last year signed
initial agreements with Bank of China and the
Industrial and Commercial Bank of China for
$1.6 billion in debt financing.
The debt financing will also be supported by state-run China
Export and Credit Insurance, which acts as an underwriter.
The project was initially agreed in 2014, but it had faced
delays and discord over the price proposed to sell electricity
from the plant and connect it to the national grid.
The project, spurred at the outset by high gas and fuel
prices, was hit as cheaper oil in recent years led to delays in
securing finance, an energy official said.
The consortium that owns the project is YTL Power
International Bhd of Malaysia and Yudean Group of China, which
each hold a stake of 45 percent, with 10 percent owned by
China's Guangdong Power Engineering Corp was selected to
lead the engineering, procurement and construction of the plant
under a turnkey contract.
The firm has reached a 30-year power purchase agreement with
Jordan's National Electric Power Co (NEPCO).
The plant will utilise Jordan's vast reserves of oil shale
and help reduce the kingdom's imports of oil products for power
generation, energy officials said.
The plant is expected to consume around 10 million tonnes of
oil shale per year.
Enefit is the world´s largest oil shale energy company. It
is also one of the largest producers of kerogen shale oil in the
world, and has been processing oil shale for 35 years.
(Reporting by Suleiman Al-Khalidi; Additional reporting by
David Mardiste in Estonia; Editing by Dale Hudson)