Jordan strikes energy deal with Iraq, Egypt

By NNN-KUNA

Amman : Jordanian Minister for Energy and Mineral Resources Khalid Shreidah has announced that the Iraqi government has agreed to supply oil to Jordan up to 100,000 barrels per day (bpd) and that Egypt has also agreed to increase exports of natural gas to the kingdom.


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In a press statement Thursday, Shreidah said that the first delivery of Iraqi oil was expected to arrive at refineries in Jordan’s Zarqa city within a few days, indicating that Jordanian trucks would rendezvous with Iraqi oil transporters near the borders.

Whether the Jordanian refineries could handle Iraqi oil, the minister said that Iraq would deliver oil from Basra and Kirkuk under two contracts, adding that Jordan chose the Kirkuk deal due to the fact that oil from this Iraqi city had less amounts of sulphur which makes it easy to refine.

Regarding the amount of oil to be exported from Iraq, Shreidah noted that last year’s contract with Iraq stated that about 100,000 bpd would be delivered to Jordan but due to the security situation in Iraq, 30,000 bpd would be brought.

The Iraqi government would handle the protection of the oil trucks to Jordan, the official said in responseto a question on security responsibility of the delivery.

On the Egyptian natural gas deal, the Jordanian minister said that Egypt would provide small amounts of gas in the first stages of the process, climbing up to bigger portions as the deal progresses.

Jordanian Prime Minister Marouf Bakhit’s visit to Iraq last year led to an agreement where Iraq provides Jordan with oil at preferential prices.

Regarding the gas imports from Egypt, Jordan signed in 2004 a deal under which the Egyptians would provide Jordanians with gas for generating electricity.

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