Jordan and Iraq are close to finalizing an $18 billion project to build a double pipeline between Basra and Aqaba, according to those in the field. The news came at a press briefing for Amman’s Basra Investment Conference, a meeting of officials and investors to solidify economic ties between Basra and Amman.
In fact, the President of the Iraqi Business Council, Majid Sadi, told reporters that a tender for the project could be floated as soon as March, with international firms from the US, Canada, China, and Germany showing interest in the project.
For more on deals between Jordan and Iraq, see:
- Iraq-Jordan Oil Pipeline to Solve Fuel Problems
- Iraq Absorbs Jordanian Industrial Imports
- Jordan and Iraq Cooperate on Investment
- Iraq Closes Jordan Border After Protests
The pipeline would run from one of Iraq’s oil-producing regions, Basra, through Anbar province and then to the port city of Aqaba. Aside from providing Jordan with gas and crude oil, the double pipeline could accrue as much as $2 or $3 billion in revenues per year, alleviating the country’s long-term energy crisis.
Other benefits of the pipeline include supplying Jordan with between 120,000 and 150,000 barrels of oil per day, the creation of 10,000 jobs in Iraq, and 3,000 positions in Jordan.
Saadi made his comments at a press conference for the Basra Investment Forum, held in Amman on February 27 and 28. The event should gather at least 250 Iraqi and Jordanian investors, who will discuss the financing of the pipeline.
The CEO of Jordan Investment Board (JIB), Awni Rushoud, noted that the forum was important not just for the pipeline but for Jordan-Iraq relations overall. Security and stability are key factors that encourage trade and partnerships, and improvement in those has increased trade in recent years.