July 2013, Vol. 240 No. 7
Projects
Pipeline Project Between Iraq, Jordan To Get Underway
A double pipeline that will channel oil to Jordan from Iraq is expected to play a key role in the kingdom’s efforts to diversify and strengthen its energy sources.
An agreement signed in April has paved the way for construction work to start on the $18 billion project with Iraqi officials estimating that the pipeline should be operational by 2017. The 1,680-km link will connect the Iraqi city of Basra with the Jordanian port city of Aqaba. Once completed, it will pump 1 MMbopd and 258 MMcf/d of natural gas from Iraq to Jordan.
The pipeline will mark a major upgrade for Jordan, which receives its 15,000 bopd imports from Iraq by truck. An additional sub-line will be connected to Jordan’s refinery in Zarqa, where the Jordan Petroleum Refinery Company will process 150,000 bopd, together with 100 MMcf of natural gas, for the domestic market. The remaining oil and gas will be channeled through Aqaba to the international market, generating annual transit fees of $3 billion for Jordan.
Iraq’s oil ministry has already awarded the Canadian SNC-Lavalin Group a contract to develop front-end engineering designs for the pipeline, which are expected to be completed within the next few months, according to the Wall Street Journal.
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