AMMAN: Jordan was one of the countries that have benefited directly from the plunge in oil prices, which reflected on reducing the National Electric Power company( NEPCO ) losses, a report on global implications of lower oil prices said.
The report, issued by the International Monetary Fund (IMF) on Tuesday, noted that NEPCO ‘s losses dropped quickly taking advantage of the decrease in oil prices in the global market. Until 2010, the electricity company had a balanced budget when it was receiving gas from Egypt at below-market price. Since then, gas from Egypt has gradually come to a halt, requiring the import of expensive petroleum products.
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As a result, the company has been running large losses. The Jordanian authorities have adopted a medium-term energy strategy to return the company to cost recovery, the report noted. According to the report, the main elements of the strategy are tariff increases, a diversification of energy sources, and measures to enhance efficiency. Prior to the decline in oil prices, NEPCO ‘s losses were expected to decline from 4.5 percent of GDP in 2014 to 3.5 percent of GDP in 2015 following a tariff increase and the start of operations of the LNG terminal. However, thanks to the fall in oil prices, additional savings of about 1.5 percent of GDP in 2015 are expected.
The first liquefied natural gas tanker, last Sunday, unloaded 162,000 cubic meters of natural gas in the gas port after it was recently opened for operation in Aqaba.
