Jordan Times
Wednesday, October 13, 2004
Feasibility study on
Jordan-Iraq oil pipeline to be conducted
By Khalid Dalal
AMMAN — The Council of Ministers decided Tuesday to start conducting a
feasibility study on constructing an oil pipeline linking the Kingdom with its
oil-rich eastern neighbour, Iraq.
Minister of State and Government Spokesperson Asma Khader told reporters
following a weekly Cabinet session that the study will be conducted in line with
a recent understanding reached between energy officials of both countries.
A source at the Ministry of Energy and Mineral Resources told The Jordan Times
that the pipeline would link Jordan's sole refinery in the industrial city of
Zarqa with the Iraqi oil pumping station in Haditha, 260 kilometres northwest of
Baghdad.
Negotiations between Amman and Baghdad to construct the pipeline started a few
years ago but were halted following the US-led war on Iraq.
The source said the pipeline might be constructed on a build, operate, own (BOO)
basis. “However, such technical matters will be decided later on,” he said.
The pipeline will be constructed with an expected capacity to transport 350,000
barrels of crude a day.
Before the war, Iraq used to supply Jordan with all its oil needs, amounting to
5 to 6 million tonnes annually. The Kingdom now relies on Arab Gulf countries to
secure its oil needs.
Also yesterday, the Cabinet approved the minutes of meetings recently signed by
Jordan, Egypt, Syria and Lebanon to include Iraq in a gas pipeline designed to
carry Egyptian gas to Jordan and later to Syria, Lebanon, Turkey and Europe.
The pipeline originates from Al Arish gas fields and extends to Taba on the
Egyptian side, then stretches to Aqaba where the first stage ends. From there it
extends to the northern parts of the Kingdom where the second stage, implemented
on a build, operate, own and transfer (BOOT) basis, concludes. The proposed
inter-regional pipeline will extend to Syria, Lebanon, Turkey and the rest of
Europe.
During their session, headed by Prime Minister Faisal Fayez, the Cabinet granted
licences to two new newspapers: Al Baydaa weekly and Al Anbat daily. Khader did
not specify when both newspapers would hit the newsstands.
The ministers also decided to buy farmers' 2004 barley production. “The
government will purchase the barley, cover the incurred transport charges and
will pay farmers 15 per cent of the overall cost,” Khader said.
In addition, the Cabinet allocated JD8 million to support the Kidney Fund, which
helps patients suffering from kidney diseases who are unable to pay for their
treatment.