Iraqi parliament has given its full support to build an $18 billion pipeline to transfer crude oil from Basra to Aqaba in Jordan. This strategic plan will help Iraq with its efforts to increase its oil exports across the world.
The 1,680-kilometre double pipeline will transport one million barrels of oil per day from Basra on the Arabian Gulf to Aqaba Port, and approximately 258 million cubic feet of gas.
Negotiations are being held between Iraq and Jordan to build a refinery in Aqaba, which will be financed by the public and private sectors in both nations. The refinery will facilitate oil exports and will be beneficial for both countries.
Basra-Aqaba oil pipeline is expected to be operative by late 2017, it will supply Jordan with 150,000 barrels of oil per day and the remaining will be exported through Aqaba. Therefore, Iraq will accumulate an estimated $3 billion a year in revenues from this project. Jordan will also consume about 100 million cubic feet of natural gas, and the remaining will be used in pumping stations along the double pipeline.
The pipeline project will help absorb the increasing oil production in Basra. Iraq’s oil output is forecasted to reach 4.9 million barrels per day in 2015 and 9 million barrels per day in 2020 according to Abdallah Al Amir, technical adviser to Hussain Al Shahristani who is deputy prime minister for energy affair