Iraq, Syria discuss reviving Kirkuk-Baniyas crude pipeline shuttered for two decades

Reviving a crude pipeline between the northern Iraqi city of Kirkuk and the Syrian port city of Baniyas was one of the matters discussed during an Aug. 11 bilateral meeting focused on bolstering energy cooperation between the Middle Eastern nations, according to Syrian state news SANA.

Syria is looking to revive its economy and rebuild its debilitated energy sector after 14 years of civil war. Revenue from oil exports could contribute significantly to reconstruction efforts, but the 300,000 b/d Kirkuk-Baniyas pipeline has been shut in since 2003 after being heavily damaged during the US-led invasion of Iraq.

Such a route would, however, give Iraq another way to export its crude produced in Kirkuk to Mediterranean markets. Around 450,000 b/d of Kirkuk crude typically served that market, but an arbitration ruling in 2023 shuttered the Iraq-Turkey pipeline, closing off international market access. Ongoing negotiations to reopen the Iraq-Turkey pipeline have met repeated dead ends.

A pipeline to Baniyas would also reduce Iraqi dependence on its southern Gulf ports near the Strait of Hormuz, where the recent Iran-Israel conflict spotlighted again how crucial the chokepoint is for international commerce, including Iraq's oil exports.

"Its revival is not just an economic project -- it is a strategic choice that will give Iraq greater maneuverability in marketing its crude and strengthen its energy security," Mudhir Mohammad Saleh, financial advisor to the Iraqi prime minister, told local news outlet Shafaq News.

Talks of reviving the 850-km Kirkuk-Baniyas pipeline are not new and go as far back as 2009 -- before Syria's civil war began. More recent efforts began in December 2024, shortly after former Syrian President Bashar al-Assad was ousted, and bilateral talks in February and April also centered on reviving the pipeline. No official details were released about the discussions, including estimated timelines or costs.

In early July, the US removed sanctions on Syria's oil ministry, its two refineries and maritime authority and also removed the terrorist designation on Hayat Tahrir al-Sham (HTS), the group now leading Syria. Lifting the sanctions was a crucial step for Syria's ability to reengage with nations that abide by US sanctions.

Now looking to revive its refineries and power the country, the Port of Baniyas has seen 65 tankers arrive this year, and it is dedicated to transporting petroleum products, "such as gas and gasoline," the head of the General Authority for Land and Seaports, Qutaiba Badawi, told SANA on Aug. 2.

Before Syria's civil war, the country produced enough oil and gas to meet its domestic needs and export some barrels and products refined at its two refineries at Homs and Baniyas. The Kirkuk-Baniyas pipeline dates to the 1950s and carried crude to the Syrian port city but was shut in 1982 and 2000 by Baghdad during political rifts.