Jordan approves oil pipeline agreement with Iraq

Jordan approves oil pipeline agreement with Iraq

2018/2/6 11:16

Jordan approves oil pipeline agreement with Iraq[Ayna-Follow-up]
The Jordanian government approved an economic agreement in response to a decision by Iraq.
The Jordanian cabinet, chaired by acting Prime Minister Mamdouh al-Abadi, decided to approve a framework agreement to be signed between Jordan’s ministries of energy and mineral wealth and Iraqi oil on the export pipeline project between Iraq and Jordan.
The project aims to build a pipeline for the export of Iraqi oil through Jordan to the port of Aqaba and supply Jordan with part of its oil needs.
The pipeline project between the two countries is a strategic project that serves the interests of the two countries. It provides a new export outlet for Iraqi oil and works to strengthen the energy strategy in Jordan.
On April 9, 2013, Iraq and Jordan signed a framework agreement for the laying of a pipeline to transport Iraqi crude oil from Basra to export ports in the port of Aqaba on the Red Sea coast and reach Egypt at a cost of about $ 18 billion, in addition to the agreement to build a large gas pipeline parallel to the oil pipeline .
The oil and energy ministries in Iraq and Jordan signed on November 15, 2015 a memorandum of understanding for cooperation in the field of oil and natural gas.
On April 2, 2017, the Iraqi government approved the construction of the Basra-Aqaba-Jordan oil pipeline project at a cost of about $ 5.6 billion.
The final cost of the Iraqi-Jordanian oil pipeline project is estimated at $ 5.6 billion, and the investor will bear the cost of extending the pipeline, where the investor will recover its costs by paying the Iraqi government.
The completion of the pipeline project between the two countries is 25 years.
It is planned to export one million barrels per day of Iraqi crude to Jordan, including 150 thousand barrels to operate the refinery Zarqa.
The pipeline will extend to the port of Aqaba, the distance to the oil heading west towards Europe and North Africa, and will avoid traffic from the Gulf Sea and the Strait of Hormuz, to the Arabian Sea and then the Straits of Bab al-Mandab and the Red Sea to the Suez Canal.

alliraqnews.com