Egypt is discussing bringing crude oil from Iraq into the country through Jordan, according to the country’s Minister of Petroleum and Mineral Resources Tarek el-Molla.
El-Molla said that talks are ongoing and making good progress.
The current talks are based on a memorandum of understanding (MoU) that was signed in 2016 and are part of Egypt’s broader strategy to become a regional energy hub, said El-Molla.
In March 2016 Iraq’s Oil Minister visited Egypt and attended a meeting with the oil ministers of Egypt and Jordan to discuss the planned oil and gas transportation pipeline.
An agreement was signed that covered cooperation between Iraq and Egypt on crude oil and gas production, drilling, refining, pipeline extensions, infrastructure, and training.
Earlier this month Jordan announced that it had approved a further agreement with Iraq to build a section composing of twin oil and gas pipelines.
Under the agreement these will extend from Iraq to Jordan and will help meet the kingdom’s energy needs and generate revenues for both countries.
The 1,680 kilometre-long twin pipeline will run from the southern Iraqi city of Basra on the Gulf to Jordan’s Aqaba port, Jordan’s state-run Petra News Agency reported.
Iraq expects to pump 1 million barrels of oil a day (b/d) in addition to 258 million cubic feet of gas through the pipeline.
Jordan requires 150,000 b/d of oil to meet its energy needs and plans to export the remaining through Aqaba, generating approximately $3bn dollars per year in revenues for the country.
In April last year signed an MoU with Egypt that stated the North African nation would provide Jordan with assistance in developing liquefied natural gas (LNG) infrastructure.