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- External debt –Lebanon to Overcome its Main Economic Problem
External debt –Lebanon to Overcome its Main Economic Problem
- By Oil and Gas Author
- Published 09/6/2006
- Petroleum Pipeline , Offshore Drilling , Liquefied Natural Gas LNG , Exploration and Discoveries , Natural Gas Petroleum , Crude Oil Petroleum
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View all articles by Oil and Gas AuthorThe Trans Arabian Pipeline (Tapline) was originally constructed in the 1940s with a capacity of 500,000 bbl/d, and intended as the main means of exporting Saudi Oil to the West (via Jordan to the port of Haifa, then part of Palestine, now a major Israeli port city). The establishment of the state of Israel resulted in diversion of the Taplines terminus from Haifa to Sidon, Lebanon (through Syria and Lebanon). Partly as a result of turmoil in Lebanon, and partly for economic reasons, oil exports via the Tapline were halted in 1975. In 1983, the Taplines Lebanese section was closed altogether. Since then, the Tapline has been used exclusively to supply oil to Jordan, although Saudi Arabia terminated this arrangement to display displeasure with perceived Jordanian support for Iraq in the 1990/1 Gulf War. Despite these problems, the Tapline remains a potential export route for Persian Gulf oil exports to Europe and the United States. At least one analysis indicates that the transportation cost of exporting oil via the Tapline through Haifa to Europe would cost as much as 40 percent less than shipping by tanker through the Suez Canal. In early 2005, rehabilitation of the Tapline at an estimated cost of $100 to $300 million was one of the strategic options being considered by the Jordanian government to meet oil needs.
The pipeline between the Syrian port of Banias and the "Strategic Pipeline" in Iraq, which connects its northern and southern oil infrastructure, has been inoperative since the war began in March 2003.
Another international pipeline option under consideration for the future involves a pipeline which would run from Haditha in Iraq to an export terminal at Aqaba in Jordan. The proposed $2 billion project would have a capacity of 1.2 million bbl/d, and would facilitate an increase in exports from Iraq once additional production capacity is developed.
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External debt –Lebanon to Overcome its Main Economic Problem
