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Jordan approves construction of new oil & gas pipeline

Jordan approves construction of new oil & gas pipeline (ShiningBlack / Shutterstock)

Jordan and Iraq have agreed to build a twin oil and gas pipeline from Basra to Aqaba. The new pipeline will help to meet Jordan’s energy needs.

The framework agreement is set to be signed between the Iraq Ministry of Oil and Jordan’s Ministry of Energy and Mineral Resources.

Iraq expects to pump 1 million barrels of oil per day (bpd) in addition to 258 million cubic-feet of gas through the 1,680 kilometer long pipeline.

This project is of great importance to Jordan, since the country suffered economically from the rise of the terrorist organization ISIS. The extremists secured nearly all official border crossings between Iraq and Jordan, forcing Jordan to utilize more expensive sources for oil and gas. With the extremists gone from the border regions Jordan plans to meet its energy needs with the new pipeline. The remainings will be sold to international markets through Aqaba, generating approximately $3 billion dollars per year in revenues.

The International Monetary Fund stated that the conflicts in Iraq and Syria were weighing on Jordan’s debt ridden economy and that the opening of export routes with Iraq would boost economic growth for both countries.

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