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3 Firms are Winners to Transport Iraq Oil to Jordan

Source: KUNA 8/14/2011, Location: Middle East

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A Jordanian transport company said it won the technical side of a bid, along with two other firms, to transport 10,000 tons of fuel oil from Iraq to Jordan every day, within an agreement signed between both neighbors in 2006.

Abdussalam Al-Theyabat, owner of Theyabat Transport and Trading Corporation, said the three transport firms have passed the technical stage of the bid, which included transportation of around 360,000 tons of heavy fuel oil every year from the Beiji, Iraq, to the Aqaba Thermal station at the Red Sea. Speaking to KUNA, Al-Theyabat said a government committee would soon open envelopes to see which company offered the least price.

He explained that the heavy fuel oil would be used to generate electricity to replace Egyptian natural gas. Explosions at gas pipelines in the Egyptian border city of Al-Arish have increased Jordan's energy bill by 20 percent in 2011. Iraq sells oil to Jordan with preferential prices, or USD 18 per barrel less than oil markets. Iraq also sells every ton of heavy fuel oil to Jordan with USD 88.

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