Iraq, Syria, and the United States are reportedly planning to revive a 500-mile pipeline, originally connecting Kirkuk in Iraq to Baniyas on Syria's Mediterranean coast. This initiative aims to reduce Iran's control over the Strait of Hormuz, which Iraq currently relies on for 95% of its oil exports. The pipeline, completed in 1952 with a capacity of approximately 300,000 barrels per day (BPD), was shut down in the 1980s and severely damaged after the 2003 U.S. invasion of Iraq.
The proposed revival comes amid recent tensions in the Middle East, including the closure of the Strait of Hormuz during a war, which caused significant energy supply disruptions and forced Iraq to cut its oil production by 60%. Iraqi Prime Minister Ali al-Zaidi and U.S. President Donald Trump are expected to unveil an agreement next week. U.S. special envoy Thomas Barrack has held discussions with officials and companies, including Chevron Corp. and Capital TI, regarding rebuilding the pipeline and other potential export routes.
The project faces significant challenges, including the need for extensive repairs or wholesale replacement of the pipeline and its infrastructure, which could take two to three years and cost billions of dollars. Security concerns also exist, as potential routes through western Iraq's Anbar province and eastern Syria still have active Islamic State cells. Despite these hurdles, Syria's President Ahmed al-Sharaa is reportedly open to the project, viewing it as a way to reintegrate Syria into the international community and diversify export options.
