Iraq-Syria Oil Pipeline to Cost $15 Billion, Take Four Years, Sources Say

A plan to export Iraqi oil through Syria, creating a crucial alternative to the disrupted Strait of Hormuz, will likely cost at least $15 billion and require four years to construct, sources with knowledge of the project told Reuters. This timeline is double the two-year window suggested by some U.S. officials for establishing new export routes to bypass the key waterway.

Project Scope and Timeline

The project is not a simple refurbishment of the existing Kirkuk-Banias pipeline, which has been severely damaged by conflict and largely unused since the 1980s. Instead, it will require laying entirely new infrastructure, according to two sources directly involved in the plans.

• Estimated Cost: At least $15 billion.
• Construction Timeline: Approximately four years, which may be extended by the need to clear old infrastructure and acquire new land rights.

This assessment contrasts with recent comments from U.S. Treasury Secretary Scott Bessent, who stated last week that the Strait of Hormuz would become "irrelevant" over the next two years as exports shift to pipelines. The new pipeline system would reportedly link Iraq's southern and northern oil fields to a central hub in Haditha before extending to Syria's Mediterranean port of Banias.

Strategic Importance and Market Impact

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The pipeline is a strategic priority for Iraq, which has seen its exports severely curtailed by the shutdown of Hormuz. Before the disruption, the country exported around 3.6 million barrels per day (bpd), primarily through its Gulf terminals. The U.S. has stated the new pipeline will have an initial transport capacity of 2 million bpd, a significant volume that would help restore a large portion of Iraq's export capabilities.

For global energy markets, the project represents a long-term solution to de-risk a major chokepoint, but the four-year timeline indicates it will not provide immediate relief. The old pipeline's capacity was only about 300,000 bpd, underscoring the scale of the new undertaking.

Feasibility Studies Underway

A consortium including U.S. energy major Chevron, TI Capital, and Qatar's UCC Holding has signed memorandums of understanding with both Iraq and Syria to conduct technical and financial feasibility studies. Chevron has confirmed the preliminary agreement but has not commented on project details, costs, or timelines.

A Chevron executive noted last month that the project could offer "another access route to market" but emphasized that studies are still needed to determine whether the existing pipeline requires refitting, expansion, or a complete rebuild. The company has not provided its own estimates for the pipeline's future export capacity.