Iraq and Syria have signed an agreement to rebuild the Kirkuk-Baniyas oil pipeline, a project that would carry up to 2 million barrels per day from Iraqi oil fields to a Mediterranean terminal in Syria. The deal is designed to give Baghdad an alternative export route that bypasses the Strait of Hormuz, a narrow waterway that has long been a chokepoint for global oil shipments.
A route around a strategic chokepoint
The Strait of Hormuz, between the Persian Gulf and the Gulf of Oman, handles about a fifth of the world's oil supply. For Iraq, which exports most of its crude through terminals in the Gulf, any disruption there — from regional tensions or military conflict — can cut off a major source of revenue. The Kirkuk-Baniyas pipeline offers an alternative. By sending oil overland to Syria's coast, Iraq gains access to Mediterranean shipping lanes, reducing its exposure to risks in the Gulf.
Reviving a long-dormant project
The pipeline is not a new idea. A version of the Kirkuk-Baniyas route operated in the past but was shut down due to war and sanctions. The new deal revives the concept, though the two countries will need to rebuild infrastructure that has deteriorated or been damaged over decades. The agreement itself is a political signal that both governments are willing to cooperate on energy infrastructure despite the broader instability in the region.
What the deal includes
Under the signed agreement, the pipeline will be designed to carry 2 million barrels per day. That volume would make it one of the largest crude pipelines in the Middle East. The deal does not specify a timeline for construction or a cost estimate, but such projects typically take years and require billions of dollars in investment. The two governments will need to secure financing, likely from international partners or state-owned oil companies.
Security is another open question. The pipeline would cross territory in Syria that has seen years of civil war and remains contested in parts. Iraq's northern provinces also face periodic instability. Protecting a pipeline of this size would require a significant security arrangement, possibly involving multiple armed forces or private contractors.
Impact on oil markets
If completed, the pipeline could shift some of the global oil trade away from the Strait of Hormuz. That would be a long-term development, but it could affect tanker traffic, insurance rates, and the strategic calculations of both oil producers and consumers. For Iraq, the pipeline would also allow it to increase export capacity without relying solely on Gulf terminals.
The deal comes as Iraq seeks to boost its oil output and revenue. The country is the second-largest producer in OPEC, but its export infrastructure has been strained. The Kirkuk-Baniyas pipeline would provide a direct outlet for crude from the Kirkuk fields, which have been underutilized in recent years due to disputes between the federal government and the Kurdistan Regional Government.
The next step will be for Iraq and Syria to move from the agreement to detailed engineering and financing. Neither country has announced a target date for the pipeline to begin operations.
