Iraq, Jordan Agree to $18 Billion Oil and Gas Pipeline from Basra to Jordanian Coast

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--An $18 billion double pipeline project between Jordan and Iraq is to be implemented immediately, following the signing of an agreement between the two countries. The pipeline will supply Jordan with crude oil and gas.

On Monday, Jordanian Prime Minister Abdullah Ensour met Iraqi Oil Ministry officials, including Nihad Mossa, the director general of Iraq's state company for oil projects, to discuss preparations for the project.

The 1,680-kilometer double pipeline will pump 1 million barrels of oil and about 258 million cubic feet of gas per day from Basra to Jordan's Aqaba port. Jordan will use 150,000 barrels of the oil for its domestic needs, while the remaining 850,000 barrels will be exported through Aqaba. The plan will generate an estimated $3 billion annually for Jordan.

About 100 million cubic feet of the natural gas will meet Jordan's domestic requirements, and excess gas will be used in pumping stations along the double pipeline.

The section of pipeline from Basra to Haditha in Iraq will be built at the expense of the Iraqi government on the basis of an engineering, procurement and construction (EPC) contract. The section from Haditha to Aqaba will be built on a build, operate and transfer (BOT) basis.

Selected companies are now being invited to bid for the pipeline from Basra to Haditha. The project includes extending a sub-line to Jordan's only refinery in Zarqa. The pipeline will be operational by the end of 2017.

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