Iraq’s plan to build a new oil pipeline through Syria to reduce its reliance on the Strait of Hormuz could cost at least $15 billion and take around four years to complete, according to sources cited by Reuters.
The proposed system would largely replace an existing Kirkuk-Banias pipeline, which was damaged by decades of conflict and has been largely inactive since the 1980s. The new network would connect Iraq’s southern and northern oil fields to a central hub at Haditha, before extending to Syria’s Mediterranean port of Banias.
The United States has supported feasibility studies for the project, which is expected initially to have a transport capacity of around 2 million barrels per day (bpd). However, sources said the project would require entirely new infrastructure rather than simply rehabilitating the old pipeline.
Iraq has been particularly affected by disruptions to the Strait of Hormuz, through which most of its crude exports traditionally move. The proposed pipeline would provide an alternative export route to Mediterranean markets and could reduce Iraq’s exposure to future disruptions in the strategic waterway.
A consortium comprising Chevron, TI Capital and Qatar’s UCC Holding has signed memorandums of understanding with Iraq and Syria to conduct technical and financial studies. Chevron has said the project could provide Iraq with “another access route to market” through the Mediterranean.
The project would also require connections to major southern oil fields, including West Qurna 2 and Nassiriya, while questions remain over technical requirements, land rights in Syria and the pipeline’s eventual export capacity.