Pipeline Talks Underway
American energy company Chevron is in negotiations with Iraq to build a cross-border oil pipeline that would carry Iraqi crude through Syrian territory to the Mediterranean port of Banias. The talks, coordinated with the US administration, aim to open an export route that avoids the Strait of Hormuz, the chokepoint through which a large share of Gulf oil normally ships.
Officials involved say feasibility studies must be completed before any construction begins, and the project remained at the negotiation stage in mid-July 2026.
The 800-Kilometer Route
The proposed line would run roughly 800 kilometers from the Kirkuk and Haditha areas of Iraq westward across Syria to Banias on the coast. It would revive a corridor first built in 1952 with a capacity of about 300,000 barrels per day, a pipeline that has sat idle for decades.
Estimates cited in the talks put construction at two to three years, with US firms including Chevron leading the work alongside regional engineering contractors.
Why Hormuz Matters
Iraq is the second-largest producer in OPEC and was pumping more than 4 million barrels a day earlier in 2026. Disruption at the Strait of Hormuz has forced sharp cuts, pushing the country's seaborne exports far below their earlier levels.
As a stopgap, between 140,000 and 220,000 barrels a day are now moved overland by truck convoys through Iraqi Kurdistan and the Syrian desert, a costly and limited substitute for pipeline flow.
Syria as Transit Hub
For Damascus, the plan positions Syria as an energy transit corridor to Mediterranean and European markets, with the country set to gain pipeline infrastructure and potential transit revenue. The route would cross sparsely populated desert where security remains a concern.
The talks follow the lifting of most economic sanctions on Syria and its removal from the US list of state sponsors of terrorism, steps that reopened the door to Western investment.
Wider Energy Push
The pipeline is part of a broader wave of US energy engagement. In February 2026, Chevron signed a memorandum for offshore exploration in Syria, and in June 2026 another American producer concluded a major oil agreement with the new Syrian government. A further memorandum covering southern Iraqi oil fields was expected to be signed in the days around the pipeline talks.