Iraq’s new oil pipeline through Syria to cost $15 billion

Iraq’s project to build a new oil pipeline through Syria to reduce its dependence on shipments through the Strait of Hormuz could take around four years to complete and require at least $15 billion, sources familiar with the project told Reuters.

Construction alone could take about four years. The sources noted that the project’s final cost and implementation timeline could change depending on construction conditions and the situation in Syria.

The project involves building a new pipeline system linking Iraq’s southern and northern oil fields to a central hub in Haditha in the west of the country, and then to Syria’s Banias port on the Mediterranean coast.

The existing Kirkuk-Banias pipeline already connects northern Iraq with the Syrian coast. However, it was severely damaged during the wars in Iraq and Syria and has not been used regularly since the 1980s.

One of the sources said that although part of the new pipeline would largely follow the same route, even the intact sections of the old line cannot be used because they do not meet the newly developed technical specifications.

The United States has previously welcomed the reconstruction and restoration of the pipeline, saying its initial capacity could reach around 2 million barrels of crude oil per day. This is significantly higher than the old pipeline’s estimated capacity of around 300,000 barrels per day.

The sources noted that the project could face additional obstacles. These could include the need to dismantle the old infrastructure and obtain new land-use rights from the Syrian administration.

By Jeyhun Aghazada