New Syria-Iraq Oil Pipeline Could Take Four Years and Cost at Least $15 Billion

Plans for a new crude oil pipeline linking Iraq to Syria could take about four years to complete and cost at least $15 billion, according to sources familiar with the project.

The proposed pipeline is intended to provide Iraq with an alternative route for exporting crude oil to international markets and reduce dependence on the Strait of Hormuz, which has faced major disruptions amid the Iran war.

The existing pipeline connecting Iraq’s northern Kirkuk oil region to Syria’s Mediterranean port of Banias was badly damaged during years of conflict and has not been regularly used since the 1980s.

Sources told Reuters that the project would require the construction of entirely new infrastructure rather than simply repairing the old pipeline. The new system would connect Iraq’s southern and northern oil fields to a central hub in Haditha, western Iraq, before continuing to Banias on Syria’s Mediterranean coast.

The United States has welcomed efforts to revive the route, with initial plans targeting a transportation capacity of around 2 million barrels per day. However, this would require a major expansion compared with the old pipeline’s estimated capacity of about 300,000 barrels per day.

Iraq exported around 3.6 million barrels of oil per day before the war, with most of its crude shipped through Gulf terminals near Basra. The disruption of the Strait of Hormuz has increased pressure on Iraq to develop alternative export routes.

Iraq and Syria have signed separate memorandums of understanding with a consortium involving Chevron, TI Capital and Qatar’s UCC Holding to conduct technical and financial studies for the project.

Chevron has said the proposed pipeline could provide Iraq with another route to international markets through the Mediterranean. However, technical studies are still needed to determine the final design, export capacity and whether any parts of the existing infrastructure can be reused.

The project could therefore take several years before construction is completed, while additional challenges could include clearing old infrastructure and securing new land-use rights in Syria.

Source: Reuters

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