The governments of Jordan and Iraq have signed an agreement to construct a new double pipeline to supply crude oil and natural gas to Jordan at an investment of $18bn.
The 1,680km double pipeline will supply about one million barrels of oil and 258 million cubic feet of gas a day, from Basra on the Arabian Gulf to Jordan’s Aqaba Port.
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Iraq oil ministry’s State Company for Oil Projects director general Nihad Mossa was quoted by the The Jordan Times as saying that the Iraqi oil minister has signed the agreement in Baghdad and the deal was sent to and signed by the Jordanian energy minister.
"We will immediately undertake all procedures to begin the implementation of this strategic project," Mossa added.
Mossa noted that a tender will be floated in the first quarter of 2014 to build the pipeline from Haditha to Aqaba.
Jordan Prime Minister Abdullah Ensour met Iraqi oil ministry officials, along with Mossa, to discuss the preparations to start the implementation of the project, reported Petra, the Jordan News Agency.
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By GlobalDataJordan requires about 150,000 barrels of oil from Iraq to meet its demand, while the excess will be exported through Aqaba to generate about $3bn revenues to the Kingdom.
Jordan also needs about 100 million cubic feet of gas, which will be used in pumping stations along the double pipeline.
The Iraqi government will finance the Basra to Haditha pipeline project, based on the engineering, procurement and construction principle.
According to Iraqi officials, the pipeline project, which involves extending a sub-line to Jordan’s sole refinery in Zarqa, will be operational by the end of 2017.
The project will create about 10,000 jobs in Iraq and Jordan.
Image: Jordan and Iraq have signed an agreement to construct a double pipeline from Basra on the Arabian Gulf to Jordan’s Aqaba Port. Photo: Courtesy of freedigitalphotos.
