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Iraq-Syria oil pipeline bypassing Hormuz could be revived within 3 years

Created at 5 Aug · 2:26 PM1 source↑ Market-relevant
IN SHORT

Iraq and Syria are in negotiations to revive a damaged oil pipeline that bypasses the Strait of Hormuz, with a Syrian official stating it could be operational within three years. The project aims to secure Iraq's oil exports and reduce Iran's leverage.

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Key Numbers

3 yearspipeline operational timeline
1.5 million to 2 million bpdprojected pipeline capacity
30 monthsminimum implementation time

Who's Involved

Youssef Qablawi
CEO of Syrian Petroleum Company, stated pipeline completion timeline
U.S. State Department
Official backing the pipeline initiative
Iraq-Syria oil pipeline bypassing Hormuz could be revived within 3 years

↳ Why This Matters

The revival of this pipeline could significantly alter global oil trade routes, reduce geopolitical risk associated with the Strait of Hormuz, and boost Iraq's export capacity, while also potentially aiding Syria's post-war economic recovery.

Key facts

  • Iraq and Syria are negotiating to rebuild a damaged oil pipeline that bypasses the Strait of Hormuz.
  • A Syrian official estimates the pipeline could be operational within three years.
  • The project aims to increase Iraq's oil export capacity and reduce reliance on the Strait of Hormuz.
  • The United States supports the initiative, expecting U.S. companies to play a role in reconstruction.
  • The pipeline is projected to have a capacity of 1.5 million to 2 million barrels per day.

Iraq and Syria are advancing plans to rebuild a damaged oil pipeline that would bypass the Strait of Hormuz, a move that could be completed within three years, according to a senior Syrian official. The initiative aims to secure Iraq's oil exports and reduce Iran's potential to disrupt global oil traffic.

Youssef Qablawi, CEO of the state-owned Syrian Petroleum Company, stated that the renovation of the pipeline from Haditha in Iraq to the Syrian port of Baniyas would take "three years at most." Negotiations are underway to finalize the contract, and discussions are also occurring with potential investors.

Engineering studies, material procurement, and construction are expected to follow the contract finalization, with implementation estimated between 30 months and three years. The pipeline is envisioned with a capacity of 1.5 million to 2 million barrels per day.

The United States has expressed support for the project, viewing it as a way to diminish Iran's leverage in the Strait of Hormuz and enhance Iraq's export security. U.S. companies are also anticipated to participate in the reconstruction efforts. The closure of the Strait of Hormuz has previously exposed Iraq's vulnerability, forcing production cuts and significant revenue losses.

Frequently asked questions

The main goal is to provide Iraq with an alternative oil export route that bypasses the Strait of Hormuz, thereby enhancing its export security and reducing reliance on a critical chokepoint.

A senior Syrian official estimates that the pipeline could be operational within three years at most, with implementation taking between 30 months and three years.

The pipeline is expected to have a capacity of between 1.5 million and 2 million barrels per day.

The U.S. supports the initiative and anticipates that U.S. companies will play a role in the reconstruction of the pipeline.

What Happens Next

01Finalization of contract negotiations between Iraq and Syria.
02Selection of companies for investment and construction.
03Commencement of engineering studies and material procurement.

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How It Developed

Iraq and Syria have begun negotiations to finalize a contract for an oil pipeline.
A Syrian official stated the pipeline could be operational within three years.
The project aims to ship crude oil from Kirkuk, Iraq, to the Syrian port of Baniyas.
The United States supports the rebuilding of the Kirkuk-Baniyas oil pipeline.
The pipeline is expected to have a capacity of 1.5 million to 2 million barrels per day.

Sources

T1
Iraq-Syria Pipeline to Bypass Hormuz Could Be Revived Within 3 YearsOilPrice.com

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