Reuters reports Iraq-Syria pipeline plan to require four years, at least $15 billion
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Iraq's planned oil pipeline through Syria to bypass the Strait of Hormuz would take four years to build and cost at least $15 billion, project sources told Reuters. U.S. officials and energy executives are promoting the plan, with Chevron part of a consortium providing initial feasibility support, as a way to reduce reliance on Hormuz. Treasury Secretary Scott Bessent said last week the strait would become irrelevant within two years, while project sources said the pipeline timeline would be twice that long.
Key Facts
- The project would require entirely new pipeline infrastructure rather than rehabilitating the existing Kirkuk-Banias line and would cost at least $15 billion.
- Treasury Secretary Scott Bessent said last week the Strait of Hormuz 'is going to become irrelevant' over the next two years.
- Iraq exported around 3.6 million barrels of oil per day before the war and shipped 35.5 million barrels through Hormuz in July, according to state-run oil firm SOMO.
- Chevron is part of a consortium providing initial support for feasibility studies for the pipeline plan.
The Pipeline Plan
Two sources directly involved in the project told Reuters the plan would require laying entirely new infrastructure rather than rehabilitating the existing Kirkuk-Banias pipeline. The new system would link Iraq's southern and northern fields to a central hub in Haditha in western Iraq, then onwards to Banias on Syria's Mediterranean coast. Intact sections of the existing pipeline are not compatible with newly developed specifications and would be unusable, one source said. The project would cost at least $15 billion and take four years to build.
U.S. and Chevron Support
U.S. officials and energy executives are promoting the plan as part of a strategy to reduce the industry's reliance on the Strait of Hormuz. Chevron is part of a consortium providing initial support for feasibility studies. The United States has welcomed the pipeline's 'rehabilitation and reconstruction' and said it will have initial transport capacity of 2 million barrels per day. Treasury Secretary Scott Bessent said last week the strait would become irrelevant within two years.
Iraq's Oil Flows
Iraq has been among the countries most affected by the Hormuz shutdown. It exported around 3.6 million barrels of oil per day before the war, mainly through Gulf terminals near Basra. The country shipped just 35.5 million barrels in total via Hormuz in July, according to state-run oil firm SOMO. The existing Kirkuk-to-Banias line has not been in regular use since the 1980s due to wars in Iraq and Syria.
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Reuters reports Iraq-Syria pipeline plan to require four years, at least $15 billion
