Page 5 - MEOG Week 40 2021

MEOG COMMENTARY MEOG

the Jordanian port of Aqaba, though insecurity, about potentially importing Egyptian gas
financial issues and, latterly, the coronavirus through the country, though this would require
(COVID-19) pandemic have proved a barrier major rehabilitation work on damaged con-
to progress. duits connecting Baniyas and either Haditha
An agreement was originally signed for a in central Iraq or an old line which links to the
pipeline to Jordan in 2013 and intermittent Kirkuk-Ceyhan duct in the north.
updates have emerged from Baghdad and
Amman over the years. Grand Faw
Progress may now finally be within reach as Baghdad is also working to expand its export
Iraqi authorities have now received bids from capabilities via the Gulf where it is building the
international companies for work to construct Grand Faw Port, which will be built to handle
the Basra-Aqaba crude oil pipeline which would 99mn tonnes per year of cargo, ranking it among
have a capacity of 1mn bpd, coming in at an esti- the world’s largest container terminals.
mated cost of $18bn. Work is nearing completion on the port’s five
Speaking to the Iraqi News Agency (INA) main piers under a $2.7bn contract awarded to
in late September, Iraqi Ambassador to Jordan South Korea’s Daewoo in 2018.
Haidar Al-Athari said: “The government has The next stage will see the creation of a
received bids from a number of global compa- world-scale subsea tunnel to link the port with
nies to build the pipeline that will transport Iraqi the Umm Qasr Port with completion anticipated
crude to Jordan.” by 2025. The final phase of the project comprises
Noting that “practical steps” had been taken, the construction of nearly 100 berths that will
Al-Athari added that the “concerned authorities serve the port, split over around 12km.
in Iraq are now considering all those bids”, with- Faw will be built to handle 99mn tonnes per
out identifying any of the bidders nor indicating year of cargo, ranking it among the world’s larg-
a timeline for a potential award. est container terminals.
The project is divided into two phases: the In July, Abdul Jabbar announced that a con-
first phase includes installing a 700-km pipeline tract had been awarded to state-owned China
with a capacity of 2.25mn barrels from Rumaila National Chemical Engineering Co. (CNCEC)
to Haditha, while the second phase includes for the construction of a 300,000 bpd refinery on
installing a 900-km pipeline in Jordan between the Al-Faw peninsula under a build-own-oper-
Haditha and Aqaba with a capacity of 1mn bpd. ate-transfer (BOOT) model.
The latter will include a spur carrying 150,000 He noted that the award was made following
bpd to Jordan’s refinery at Zarqa, which is in the assurances from China’s Assets Supervision and
process of a much-delayed expansion. Administration Commission (SASAC) that it
With a gas line also planned to be built along would provide full funding for the facility.
the same route, total cross-border capacity is With work ongoing throughout the mid- and
anticipated to be 1mn bpd of oil and 258mn downstream, Iraq is making significant progress
cubic feet (7.3mn cubic metres) per day of gas. to provide outlets for its additional upstream
Meanwhile, Iraq has also spoken to Syria crude flows.™

Week 40 06•October•2021 www. NEWSBASE .com P5