Posted on 25 August 2014. Tags: Anbar, Iraq, Iraq-Jordan Pipeline, Jordan, Ramadi
By John Lee.
Iraq was once the consumer of some 20% of Jordan’s exports, but since the border between the two countries is now all but closed, this trade has dropped off dramatically.
Al Jazeera has reported that the number of trucks crossing the border between the two countries has fallen from an average of 500 per day to just 25 per day.
Jordan borders the Iraqi province of al-Anbar (Trebil border crossing pictured) which has been under partial Iraqi government control since December 2013.
The capital of the province, Ramadi, is still in government hands in part due to pro-government tribal fighters known as Sahwa.Trucks can still make the journey between the two countries, the report noted, but the crisis has turned a two day journey into a two week trek.
Since Jordan has been partly dependent on Iraqi oil supplies and has economic worries of its own, Jordanian business leaders have stressed the severity of the situation.
(Source: Al Jazeera)
Posted in Industry & Trade
Posted on 21 May 2014. Tags: Aqaba, Iraq-Jordan Pipeline, Jordan, pipelines, State Company for Oil Projects (SCOP)
By John Lee.
Iraq’s parliament fully supports a project to build an $18 billion pipeline to export crude oil from Basra to Jordan’s port city of Aqaba.
Speaking to The Jordan Times, Adnan Al Janabi, chairman of the Iraqi parliament’s energy committee said:
“We are very supportive of this strategic project with Jordan, which will greatly help Iraq increase its oil exports across the world.”
The 1,680-kilometre double pipeline will pump one million barrels of oil a day from Basra on the Arabian Gulf to Aqaba Port, and around 258 million cubic feet of gas.
The oil pipeline, which is expected to be operational late in 2017, will 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.
Approximately 100 million cubic feet of natural gas will fulfil Jordan’s gas requirements and the rest will be used in pumping stations along the double pipeline.
Baghdad has recently shortlisted 12 international companies to build the pipeline, according to Iraqi officials and the State Company for Oil Projects (SCOP) is expected to invite these firms to submit their offers by November or December.
(Source: The Jordan Times)
Posted in Oil & Gas
Posted on 18 February 2014. Tags: Iraq-Jordan Pipeline, Jordan, pipelines
Jordan and Iraq began a coordination meeting with international companies interested in constructing an oil pipeline between the Iraqi city of Basra and the port city of Aqaba in Jordan.
Work on the project will begin soon, and once completed, it will be used to export crude Iraqi oil through the Aqaba port.
The final meeting among Jordan, Iraq and the international companies will be held tomorrow to prepare copies of the tenders from the Iraqi side.
Chief Commissioner of the Aqaba Special Economic Zone Authority (ASEZA) Kamil Mahadin, who attended the meeting, said it is one of the mega projects that would further enhance economic relations between Jordan and Iraq. “Iraq will provide Jordan with oil at preferential prices as the pipeline will pass through the Kingdom’s territories,” he added.
The construction of the 1,700 kilometer-long pipeline will cost $18 billion and will allow Iraq to export around one million barrel of crude oil daily.
(Source: Petra)
Posted in Construction & Engineering, Oil & Gas
Posted on 05 February 2014. Tags: Anbar, Iraq-Jordan Pipeline, Jordan, oil exports
By John Lee.
Oil exports from Iraq to Jordan have been halted due to deteriorating security in Anbar province, according to a report from Reuters.
A spokesman for the Ministry of Oil said:
“Due to security developments in Anbar and because the transfer of oil to Jordan is done by truck, which needs safe passage to cross, exports were stopped … As soon as the reasons are removed exports will resumed.“
The volume in question is said to be between 10,000 and 12,000 barrels of crude oil per day.
Iraq is planning to build an $18-billion pipeline to Jordan to export 1 million barrels bpd of crude, of which 150,000 bpd will supply Jordan’s Zarqa refinery.
The remainder would be exported through the Red Sea port of Aqaba, reducing Iraq’s reliance on the Strait of Hormuz.
(Source: Reuters)
Posted on 11 January 2014. Tags: Aqaba, Iraq-Jordan Pipeline, Jordan, pipelines
By John Lee.
Jordan and Iraq have agreed on executing an oil pipeline to export Iraqi oil through Jordan.
KUNA reports that the agreement came after a high-ranking joint meeting attended by the energy ministers of the two countries.
The pipeline will pump one million bpd of Iraqi crude to the Red Sea port of Aqaba, while Iraq will provide Jordan with oil at preferential prices.
The two parties have also agreed to study the possibility of setting up an oil refinery and power station.
(Source: KUNA)
Posted in Construction & Engineering, Oil & Gas
Posted on 04 September 2013. Tags: Aqaba, China National Petroleum Corporation, CNPC, Consolidated Contractors Company, Daewoo, Egypt, Fius Capital, Go Gas, Greece, india, Iraq-Jordan Pipeline, Italy, Japan, Jordan, korea, Larsen & Toubro (L&T), Marubeni, Mass Global, Mitsui, Orascom, Petrofac, Petrojet, pipelines, Punj Lloyd, Saipem, State Company for Oil Projects (SCOP), Stroygazconsulting (SGC), Toyota Tsusho
By John Lee.
The Wall Street Journal and Reuters report that Iraq has shortlisted 12 international companies to build the new $18-billion oil export pipeline to Jordan, the country’s first such pipeline in decades.
Iraq’s oil ministry has chosen these companies from a list of more than 80 international firms which submitted their credentials to build a section of the 1,040-mile pipeline from Basra to Jordanian Red Sea port of Aqaba.
The short-listed companies and consortiums are:
It is understood that the State Company for Oil Projects (SCOP) will invite the short-listed companies to receive the tender package, and then submit their offers by November or December.
Iraq and Jordan signed a preliminary agreement in April to build the section of the pipeline that would stretch from an Iraqi oil pumping station in Haditha, west of Iraq, to Aqaba. The rest of the pipeline, which is 680 kilometers long, linking a Basra pumping station with the one in Haditha would be built and financed by the Iraqi oil ministry.
Iraq hopes the pipeline will make it less dependent on Persian Gulf export terminals, providing an alternative route if Iran closes the Strait of Hormuz.
A third section of the pipeline, running to Syria’s Banias port in the Mediterranean, has been postponed because of the conflict in the neighboring country. It would have a capacity of 1.25 million barrels a day.
(Sources: WSJ, Reuters)
Posted in Construction & Engineering, Oil & Gas
Posted on 05 July 2013. Tags: Aqaba, Citigroup, Haditha, Iraq-Jordan Pipeline, Jordan, pipelines, SNC Lavalin
By John Lee.
Forty companies are reported to be bidding for contracts to build and finance the new pipeline from Haditha to Jordan’s Red Sea port of Aqaba (pictured).
Nateq Balasem Khalaf, deputy director general of the state State Company for Oil Projects (SCOP), told Bloomberg that Citibank is among the bidders, adding that other interested banks and companies are from Russia, South Korea, Japan, Italy, China, Egypt, Jordan, and Germany.
The new crude pipeline would carry 1 million barrels a day, including 150,000 barrels a day for Jordan’s domestic consumption, and the rest for export, while the gas pipeline would transport 252 million cubic feet a day, of which 100 million cubic feet would be exported to Jordan.
SNC-Lavalin Group (SNC) is advising the government on ways to build new routes to export oil currently shipped via pipeline to Turkey and by sea through the Persian Gulf.
Khalaf said that the government plans to build and finance a separate section of the network itself to Haditha from Basra, for which it will ask for bids from pipeline suppliers by the end of the year.
Citigroup, a U.S. lender scaling back in some emerging markets, plans to open offices and branches in Iraq to benefit from an estimated $1 trillion of infrastructure spending there, Mayank Malik, the bank’s chief executive officer for Jordan, Iraq, Syria and the Palestinian territories, said in a June 27 interview.
Iraq will start operating its third offshore export facility for crude by the end of the year and plans to upgrade its two onshore terminals at Basra and Khor al-Amaya, Khalaf said. The government is building 16 crude-storage tanks in the southern port of al-Faw, each with a capacity of 58,000 cubic feet. Four are operational, another four are to be completed by the end of July and the rest by year-end, he said.
Iraq is on track to increase crude exports to 3.5 million barrels a day by the end of 2013, Khalaf said. The country produced 3.15 million barrels a day to 3.2 million barrels a day on average in June, according to an e-mailed Oil Ministry statement on June 29.
(Source: Bloomberg)
Posted in Construction & Engineering, Oil & Gas