"International Energy" Proposes Establishing a Pipeline Between Iraq and Turkey to Bypass Hormuz

SadaNews - Fatih Birol, the executive director of the International Energy Agency, proposed the creation of a new oil pipeline linking the oil fields in Basra, Iraq, to the Ceyhan oil terminal on the Mediterranean Sea in Turkey, aiming to reduce reliance on the Strait of Hormuz, according to the Turkish newspaper "Hurriyet".

Birol stated in an interview with the newspaper published on Sunday: "I believe that the Basra-Ceyhan pipeline could be very attractive and extremely important for both Iraq and Turkey, as well as for supply security in the region, especially from Europe's perspective." He added: "I also believe that the financing issue can be overcome. Now is the perfect time."

The Strait of Hormuz: A Cycle of Closure and Reopening

Iran reinstated restrictions on the movement of ships in the Strait of Hormuz on Saturday, less than 24 hours after Tehran announced the passage was open to commercial vessels. Several liquefied natural gas tankers changed their course while heading to the strait after Iranian warnings were issued to ship leaders that the vital passage was closed again to navigation.

Iraq relies on the Strait of Hormuz for oil exports from the Basra port in the Gulf, which contains one of the largest global reserves of approximately 90 billion barrels and constitutes about 90% of the country's oil exports, according to Birol.

Birol remarked regarding the strait: "Damage has been done, and it is very difficult to fix it," adding that establishing a new pipeline is "essential for Iraq and an opportunity for Turkey, and it represents a significant opportunity for Europe in terms of supply security. I believe it should be viewed as a strategic project."

He noted that the implementation of the project requires a political agreement between Iraq and Turkey, "which I believe is achievable," indicating that securing funding could also receive European support.

Turkey, Syria, and Jordan Move to Provide Alternative Oil Routes

Turkey has already proposed to extend a pipeline with Iraq linking Ceyhan and the Kirkuk fields in northern Iraq to the south, as part of efforts to create a multi-billion dollar trade corridor extending from the Faw port in Basra province to northern Turkey. Turkey, Syria, and Jordan recently agreed to update rail and highway networks to establish a connected corridor between southern Europe and the Gulf.

Turkey has emerged as a more viable option after the war between Israel and Hamas disrupted progress on the economic corridor project between India, the Middle East, and Europe, which is supported by the United States to create rail lines across the Arabian Peninsula. With the attacks by the Houthis disrupting shipping in the Red Sea, along with rising regional instability, the project has effectively come to a standstill.