Chevron Advances Iraq-Syria Pipeline Plan to Bypass Strait of Hormuz

Chevron Corp. is advancing plans to build a pipeline network linking Iraq and Syria after the closure of the Strait of Hormuz disrupted crude exports.

Chevron and the Iraqi government are in late-stage talks to build and rehabilitate a pipeline system leading to Syria, the Financial Times reported on July 16. Chevron has formed a consortium with a US investment firm and a company owned by the Al-Khayyat brothers, Syrian-Qatari billionaires, to develop the network.

The project aims to open a direct route for crude from southern Iraq to the Mediterranean. The plan calls for a pipeline connecting southern Iraqi oil fields with Kirkuk, the northern oil city, then using part of an aging network to build a second line from Kirkuk across Syria to the Mediterranean coast.

Tom Barrack, the US ambassador to Turkiye and a close ally of President Donald Trump, was also involved in discussions on the project, the newspaper reported. Chevron is also set to sign a memorandum of understanding this week to develop two large oil fields in southern Iraq.

The project would help Iraq reduce its dependence on the Strait of Hormuz for crude exports. Iraq, OPEC's second-largest producer, pumps 4 million barrels a day and has cut output by more than half since the war between the US and Iran began. The Iraqi government, facing a heavy economic blow, is moving quickly to secure alternative export routes.

Saudi Arabia, the United Arab Emirates and other Middle Eastern countries are expanding pipelines designed to bypass the Strait of Hormuz as they seek to boost crude export capacity. Even so, pipelines remain vulnerable to drone and missile attacks on pumping stations, storage facilities and terminals, leaving them far from immune to conflict.

The armed conflict between the US and Iran has entered its second week. US attacks have expanded beyond military facilities to civilian infrastructure including airports, railways and ports. Iran has also broadened its retaliation across the Gulf, intensifying the confrontation. Warnings are also growing that the era of free passage through the Strait of Hormuz may be ending and that a larger permanent US military presence will become unavoidable.

Kim Mi-ri, Hankyung.com reporter mirimiri@hankyung.com