Jordan and Iraq to build new oil and gas pipeline

08 February 2018
The 1,680 kilometre-long pipeline will run from Iraq’s Basra on the Gulf to Jordan’s Aqaba port

Jordan has approved an agreement with Iraq to build a twin oil and gas pipeline from Iraq to Jordan, which 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 has reported.

The framework agreement is set to be signed between the Iraq Ministry of Oil and Jordan’s Ministry of Energy and Mineral Resources (MEMR).

The Iraqi oil ministry has repeatedly expressed "a keenness" for oil and gas deals with its neighbouring countries, as the country rebuilds its economy.

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.

Turaibil, the main border crossing between Iraq and Jordan reopened in August last year after two years of closure due to extremist militants’ control of the area. Jordan hopes to revive exports to Iraq through the reopening of the crossing, which it calls Karameh.

The International Monetary Fund (IMF) has said that the prolonged conflicts in Iraq and Syria were weighing on Jordan’s debt ridden economy and that the opening of export routes with Iraq would boost economic growth for both countries.

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