An old Iraq-to-Syria oil pipeline that bypasses the Strait of Hormuz could be up and running within three years, a senior Syrian official has said.
The Hormuz crisis that cut off most of Iraq’s crude oil exports has accelerated plans by Iraq and Syria to rebuild a damaged oil pipeline to ship crude oil from the Iraqi fields in Kirkuk to Syria’s Mediterranean coast.
The completion of the renovation of the pipeline from Haditha in Iraq to the Syrian port of Baniyas would take “three years at most,” said Youssef Qablawi, CEO of the state-owned Syrian Petroleum Company.
Syria and Iraq have started negotiations to finalize the contract, and are also in discussions with companies that will invest in this pipeline, the executive said, as carried by Iraqi news outlet The New Region.
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“Engineering studies and the purchase of materials will then begin, followed by construction. Implementation will take between 30 months and three years at most, after which the pipeline will be ready,” Qablawi told reporters.
The project is expected to consist of two pipelines with a capacity of between 1.5 million barrels per day (bpd) and 2 million bpd, according to the executive.
Last month, the United States voiced its support for the plan. The U.S. backs the Iraqi and Syrian efforts to rebuild the Kirkuk-Baniyas oil pipeline and diminish Iran’s potential to disrupt Hormuz traffic in the future, an official at the U.S. State Department told Reuters.
The United States also expects U.S. companies to play a role in the reconstruction of the Kirkuk-Baniyas oil route, according to reports. The pipeline would be crucial for Iraq’s oil exports not depending on Hormuz, Syria’s post-war economy, and reduced Iranian leverage in the Strait.
Iraq desperately needs export routes not depending on the Strait of Hormuz, whose closure exposed this key Iraqi vulnerability, forced OPEC’s second-largest producer to slash upstream production, and led to billions of U.S. dollars of lost revenues for Baghdad.
By Tsvetana Paraskova for Oilprice.com
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