Iraq-Syria Oil Pipeline Could Cost at Least $15 Bn, Take Four Years to Build

Iraq’s planned crude oil pipeline through Syria, aimed at reducing reliance on the Strait of Hormuz and avoiding future export disruptions, is expected to cost at least $15 billion and take around four years to build, according to two sources familiar with the project cited by Reuters.

US officials and energy executives are promoting the project as part of efforts to develop alternative oil export routes following disruptions to the Strait of Hormuz during the Iran conflict. A consortium including Chevron has provided initial support for feasibility studies.

US Treasury Secretary Scott Bessent said last week that the Strait could become less significant within two years as more oil and gas exports shift to underground pipelines. However, the sources said the Iraq-Syria project would take roughly four years due to the scale of new infrastructure required.

An existing pipeline connects Iraq’s northern Kirkuk region with Syria’s Mediterranean port of Banias, but it was badly damaged by wars in both countries and has not been regularly used since the 1980s.

The sources said the project would require a completely new pipeline system rather than rehabilitation of the existing line, with parts of the old route incompatible with the new specifications.

The new system would connect Iraq’s southern and northern oil fields to a central hub in Haditha, western Iraq, before extending to Banias.

The four-year timeline could face further delays due to the need to clear old infrastructure and secure new land-use rights from Syria’s administration, one source said.

In June 2026, Iraq began preparing to export crude oil and naphtha through Syrian ports after the Iran war disrupted its main export routes through the Gulf. By July, the US received its first fuel oil cargo of Iraqi origin shipped via Syria, marking a step forward in Iraq’s efforts to diversify its oil export routes amid continued disruptions to Gulf shipping.