Iraq to build oil pipeline to Jordan

Iraq's state minister, Ali al-Dabbagh, has announced his nation is to build a pipeline network to transport crude to Jordan.

An employee works at Tawke oil fields in northern Iraq.Now Iraq is to build a pipeline to Jordan to boost its economic recovery. AP Photo/Hadi Mizban

In a bid to boost its economic rebuilding efforts Iraq has agreed to build a pipeline network to transport crude to Jordan which itself is attempting to address growing domestic energy needs.

Iraq's state minister, Ali al-Dabbagh, announced the agreement at a press conference today, one day after the Jordanian prime minister, Samir Rifai, met with his Iraqi counterpart Nuri al-Maliki in Baghdad.

The two countries will also explore development of the Risha gas on their shared border, Mr al Dabbagh said.

By getting the trucks that currently transport crude on road from Iraq to Jordan off the road, a pipeline would both increase road safety and reduce emissions, said Jordan's former energy minister, Khaled Irani.

"If it happens, it will be good for all countries," Mr Irani said.

The Iraqi government also plans to take bids for oil and gas pipelines to Syria this year.

Plans to increase Jordan's oil imports do not conflict with the country's goals to supply one tenth of its energy from renewable sources such as solar power in 10 years, said Mr Irani, who is now setting up a regional energy and environment consultancy. The country's electricity consumption is expected to double in that same period.

"By 2020 you will still need at least 40 to 50 per cent of crude oil to come into the country anyway," Mr Irani said. "You will need to import fossil fuel products."

*with Bloomberg