Iraq launches $1.5 billion Basra–Haditha oil pipeline project

Iraq has launched the construction of a major new oil pipeline as part of efforts to expand its export capacity, while also preparing to resume flows through a key existing route, according to the Ministry of Oil.

In a statement reported by Erem Business, the ministry announced the start of the Basra–Haditha pipeline project, which will have a capacity of 2.5 million barrels per day and an estimated cost of $1.5 billion. The 700-kilometre pipeline, with a diameter of 56 inches, is described as a strategic project aimed at diversifying Iraq’s crude export routes.

Ministry spokesperson Sahib Bazoun said a final contract has been signed between the Ministry of Oil and the Ministry of Industry and Minerals. The pipes for the project will be manufactured domestically by the State Company for Iron and Steel, according to the Iraqi News Agency.

Bazoun confirmed that funding of $1.5 billion has been allocated and that construction work is already underway. He said the project is a top priority for the ministry, as it will provide multiple channels for exporting crude oil.

He added that the project’s completion will depend on continued financial support, noting that while work has begun, the next administration will finalise the necessary budget procedures to accelerate implementation.

At the same time, Iraq is moving closer to resuming exports through the Kirkuk–Ceyhan pipeline. Bazoun said recent developments affecting maritime traffic in the Strait of Hormuz have underscored the need to activate alternative export routes.

He noted that the port of Ceyhan, via the Kurdistan Region, continues to handle oil exports and described the Kirkuk–Ceyhan pipeline as a critical national project with a capacity exceeding 1 million barrels per day.

“This pipeline was severely damaged due to the control of the terrorist organisation ISIS and the events of recent years; the Iraqi Ministry of Oil managed to restore it. Currently, final checks are being carried out to soon enable oil exports with a capacity of up to 600,000 barrels per day,” Bazoun said.

According to the ministry, the new Basra–Haditha pipeline will facilitate exports to three destinations: Baniyas in Syria, Ceyhan in Türkiye and Aqaba in Jordan.

By Tamilla Hasanova