Baghdad, Beirut discuss pipeline revival to bypass Strait of Hormuz

Lebanon has proposed providing Iraq with a new oil transit route to the Mediterranean, as Baghdad seeks alternatives to the Strait of Hormuz, where disruptions linked to the Iran conflict have sharply reduced Iraqi exports.

Officials from both countries said the proposal was discussed during a visit to Baghdad by Lebanese Prime Minister Nawaf Salam, with talks focusing on reshaping bilateral economic ties, particularly in the energy sector.

Iraq, OPEC’s second-largest producer, has been among the hardest hit by the effective closure of the strait, with exports falling from about 4.2 million barrels per day in February to 1.5 million in May, according to OPEC data.

Mudhir Mohammed Salih, a financial adviser to Iraqi Prime Minister Ali Al Zaidi, said Lebanon had предложил itself as an additional outlet for Iraqi crude to the Mediterranean. “This idea, if realised, would grant Lebanon a significant logistical role and open a new trade window for Iraq to the world,” he said, adding that “the closure of the Strait of Hormuz has put us in a difficult situation.”

Lebanon’s Energy Minister Joe Saddi described the talks as “very positive,” saying both sides agreed to form a joint technical team to explore how Iraqi crude could reach Mediterranean markets via Syria, with Lebanon positioned as a transit and processing hub. “At this stage, these are really just statements of intent,” he said, noting that technical studies would be the next step.

Discussions included reviving the long-defunct Kirkuk-Baniyas pipeline, which historically carried Iraqi crude to Syria and onward to Lebanon’s Tripoli port. Plans may also involve constructing a branch line to Tripoli and potentially building a refinery to meet Lebanon’s domestic fuel demand. In the short term, Iraq could use existing storage facilities in Tripoli for exports.

The initiative comes as Iraq pursues multiple export routes, including a pending extension of its agreement with Türkiye on the Kirkuk-Ceyhan pipeline. However, analysts caution that rebuilding or reconnecting regional pipeline infrastructure will take years. “They want to see whether they can reconnect or rehabilitate the infrastructure, but that process will take years. It's not something that can be done quickly,” said energy analyst Marc Ayoub.

Financial issues remain unresolved, including $1.2 billion in arrears owed by Lebanon under a previous fuel agreement.

By Tamilla Hasanova