Interest in renewed Iraq-Israel oil pipeline picking up - sources.
353 words 7 March 2005 04:15 am Platts Commodity NewsServiceLine Copyright
2005. Platts
Jerusalem (Platts)-7Mar2005/411 am EST/911 GMT Foreign investors have reestablished contact with the Israeli government and with a state-owned infrastructure company on the possibility of rebuilding an unused Iraq-to-Israel oil pipeline, according to Israeli officials. The potential
$1- bil project could resurrect a 12-inch diameter pipeline that was built in the late 1930s, but which is now unusable. Sources said that a number of groups, primarily from the US, were looking into building a much larger pipeline along the original route, running from Mosul in northern Iraq to
Haifa. "The idea is in a very preliminary stage, and calls for the construction of a 40 to 42 inch pipeline to transport large quantities of crude from Iraq to Haifa for export," said Rafi Taterka, CEO of Israel's state-owned Infrastructure Petroleum Company. He said that the project would depend on an improved geopolitical situation in Iraq.
But the IPC CEO noted that Jordanian investors are also interested in the project, which would run along the original route through Jordan.
Jerusalem (Platts)-7Mar2005/412 am EST/912 GMT
Taterka said that right of way exists along the entire route and therefore a pipeline could be built in a relatively short period of time. Former Israeli Energy Minister Shahal, a leading Tel Aviv-based lawyer, is involved with at least one of the interested groups trying to advance the project. If built, the pipeline would transport oil from Iraq to the Zarqa refinery in Jordan and to the Haifa refinery, and could help reduce the need for shipping the crude through the Suez Canal. Taterka said that his company has already asked for approval of plans to expand the deep water tie up at Haifa to accommodate tankers of 250,000- 300,000mt. He said that IPC plans to proceed with the expansion regardless of whether the pipeline project gets built. Since the US-led invasion of Iraq, there have been various reports on the possibility of pumping oil from northern Iraq to Haifa, via Jordan. |
