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Construction of Iraqi oil-gas pipeline expected to start this year — envoy

By Mohammad Ghazal - May 25,2016 - Last updated at May 25,2016

AMMAN — Construction of the oil pipeline between Iraq and Jordan is expected to start this year, according to the Iraqi Ambassador to Jordan Safia Al Souhail.  

The pipeline is planned to export Iraqi crude oil via Jordan and provide the Kingdom with its oil needs.

"There is huge support from our government to the project and we expect more steps to be taken this year regarding its implementation," Al Souhail told The Jordan Times in a recent interview, describing the multibillion project as "very important" for both neighbours.

Baghdad has announced recently changes to the route of the pipeline to speed up the construction of the $15 billion project, to be carried out by international companies on the basis of build, operate and transfer .

Jordan, which imports around 97 per cent of its energy needs annually, used to receive around 10,000 barrels per day of crude oil from Iraq before Daesh militants controlled several parts in western Iraq, causing a complete halt to shipments used to be carried by trucks. Jordan's daily consumption of oil is estimated at over 100,000 barrels. 

The project was originally envisioned as a 1,680km double pipeline that would pump 1 million barrels of oil a day from Basra on the Arabian Gulf to Aqaba Port and around 258 million cubic feet of gas.

 

It is expected to provide Jordan with 150,000 barrels of oil per day, while the rest will be exported through Aqaba, generating an estimated $3 billion a year in revenues for the Kingdom. 

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