Proposed Iraq To Jordan Oil Pipeline May Get Funding From Citigroup

IVC POST | Updated: Jul 04, 2013 02:39 AM EDT

Tags : Citigroup Inc., Iraq, Oil Pipeline, Jordan

Citigroup Inc expressed their interest to fund a pipeline in Iraq to be used to export natural gas and crude oil. The pipeline will run through the central town of Haditha to Jordan's Red Sea port of Aqaba.

The Iraqi government is currently preselecting companies from the 40 bidders who are vying to finance and build the oil

Iraq holds the fifth-largest proven oil reserves in the world. The government is currently rebuilding its energy industry and infrastructure after years of war and sanctions.

SNC-Lavalin Group (SNC) is advising the Iraqi government on the ways to build new routes. These will be used to export oil via pipelines to Turkey and shipments via sea to the Persian Gulf.

The new oil pipeline is estimated to carry over 1 billion barrels of crude oil per day. The estimated volume will include 150,000 barrels a day which will be used for Jordan's domestic consumption. The rest will be for export. For the gas pipeline, estimated volume expected would be 252 million cubic per day.