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Iraq and Jordan reach agreement on oil pipeline

LNG Industry,

Iraq’s State Minister has stated that Iraq has agreed to build extra pipelines across its shared border with Jordan to increase the supply of crude oil flowing to its neighbour. Currently, Iraq supplies Jordan with 10,000 bpd of oil that it sends to Jordan in oil tankers over land, but this is not enough to keep up with demand.

The two countries have also agreed to talk about increasing production at the Risha natural gas field, which is on the two countries, shared border.

“Iraq and Jordan have agreed in principle to build a pipeline network to carry crude oil to the refinery in Zarqa,” said Ali al-Dabbagh, Iraqi State Minister.

This pipeline is part of continuing efforts by the Iraqi government to re-integrate the country into the regional economy and foster closer economic links with its neighbours.

The Jordanian government is looking to attract investment of up to US$ 14 billion in this energy infrastructure to meet growing domestic demand. BP, which is exploring the Risha field with Jordan’s National Petroleum Co., is planning to spend US$ 237 million over the next four years to increase production as well.

Iraq is also inviting bids to build oil and gas pipelines into Syria, these pipelines will provide extra routes to export Iraq’s crude oil out of the country and compliment its existing export route through to the Turkish port of Ceyhan.

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