Published: 2018-02-07 10:09
Last Updated: 2018-02-07 11:23
The Jordanian Cabinet approved on Monday the construction of an oil pipeline to export oil from southern Iraq through the port of Aqaba to the kingdom, the state-run Petra news agency reported.
The government approved a framework agreement to be signed soon by both countries, the minister of energy and mineral resources, Saleh Kharabsheh confirmed.
The project is strategic for both countries as it will provide the kingdom with its energy needs of oil and gas, through 150,000 barrels of crude oil to be provided per day, the minister said.
The minister confirmed it will benefit the Jordanian economy, as the kingdom will receive transit fees for the oil pipeline from Iraq. It will also provide job opportunities for Jordanians during the construction and operation phases.
While the ministry did not give further details on the project or the timeline, the minister confirmed it will cost around $8-10 billion, and it will cover 1350 km from Basra to Aqaba passing by Iraq’s Najaf city.
Earlier in 2013, both countries agreed on the project’s idea, but plans were postponed after ISIS swept across large parts of Iraq in 2014.
Iraq that has the world’s largest oil reserves is seeking to boost production and exports funds after years of war against ISIS.
On the other hand, Jordan suffers energy shortage as it depends on imports for 98% of its energy needs. It currently consumes 134,000 barrels per day and imports most of its oil from Saudi Arabia.