Jordan is considering plans to build a new grassroots refinery at Aqaba to process crude oil supplied by a long delayed oil pipeline from Iraq, the country’s oil minister said.

The new refinery would supplement the existing Zarqa refinery, which is currently being upgraded.

“If there will be a pipeline from Iraq, we will be looking to build a new refinery in Aqaba,” Hala Zawati told journalists on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference on 13 November.

“[We are building] another one so that white products can be immediately exported through Aqaba.”

Zawati did not provide any details on the size of the planned refinery or expected startup date. Iraq has spent the last five years working on a major export pipeline project which could transport 1.5 million barrels a day (b/d) of crude from its southern oil fields to Jordan's Aqaba port.

Iraq produces around 4.6 million b/d, and exports around 3.7 million b/d from its southern oil terminals around Basra. The government has been keen to diversify its export options, looking to rebuild its pipeline through Turkey in the north, as well as Syria and Jordan to the west.

Canada’s SNC Lavalin has worked with the oil ministry to manage the scheme, which will be contracted on a build, own, operate, transfer (BOOT) model. However, the oil ministry has failed to get interested investors to commit to the project due to the volatile security situation in western Iraq, where the government has spent the last two years fighting Islamic State militants.

The oil ministry also planning a major strategic pipeline from the southern oil fields in Basra to Haditha in the west. This will be government funded, but again has made no progress.

The original Iraq-Jordan pipeline plan involved a 150,000 b/d spur-line running to the existing Zarqa refinery. It is unclear if this is still be part of the plan.

State-owned Jordan Petroleum Refinery Company (JPRC) signed a deal with the US’  Honeywell UOP last year for the $1.6bn expansion of Zarqa to increase capacity to 120,000 b/d and upgrade its products to meet Euro V emissions specifications.

Honeywell UOP will provide manager licensor services, technology licensing, front-end engineering design consultancy services, and basic engineering design. It will also provide catalysts and process equipment, and training and start-up services.