Iraq, Syria to Revive Oil Pipeline to Bypass Hormuz

Iraq and Syria have agreed to revive an oil pipeline that has been inactive since 2003. The deal aims to reduce Iraq's reliance on the Strait of Hormuz, which has faced disruptions due to recent conflicts involving Iran. The agreement was signed during a U.S.-Iraq investment summit in Washington, with U.S. Energy Secretary Chris Wright overseeing the signing by Basra Oil Company CEO Bassem Abdul Karim Nasr and Syrian Petroleum Company CEO Youssef Qablawi, according to reports from CNBC.

Pipeline Details

The pipeline connects Iraq's northern oil hub of Kirkuk to Syria's Mediterranean coast and has a nameplate capacity of 700,000 barrels per day. It has remained offline since being damaged during the 2003 U.S. invasion of Iraq. The revival of this pipeline comes as Iraqi Prime Minister Ali al-Zaidi visits the U.S., where he met President Donald Trump earlier this week. Wright stated,

There is so much room to drive improvement in Iraq, to raise oil production, to reduce dependencies on hostile neighbors, to bring freedom, prosperity and abundant energy to the nation of Iraq.

Context and Implications

This initiative follows significant disruptions to Iraqi oil exports amid the Iran conflict, which impacted tanker traffic in the Strait of Hormuz. Iraq, the second-largest oil producer in OPEC, saw its oil production drop to about 1.9 million barrels per day in June, down from approximately 4.2 million barrels per day in February. Other Gulf nations are also exploring alternatives to the Strait of Hormuz; for instance, the UAE is constructing a second pipeline to Fujairah on the Gulf of Oman, while Saudi Arabia is considering expanding its Red Sea pipeline network. Analysts have expressed caution regarding the feasibility of these alternatives.