Baghdad (IraqiNews.com) – Iraq aims to boost pipeline oil exports from 220,000 to 770,000 barrels per day within 75 days.
This 250 percent increase aims to avoid the blocked Strait of Hormuz by channeling flows to the Turkish port of Ceyhan and arranging new export deals via Syria, according to Quantum Commodity Intelligence.
The Iraqi cabinet officially authorized the two-phase pipeline extension, as well as a plan to increase oil exports to neighboring countries to 420,000 barrels per day via tanker trucks.
These steps represent an immediate reaction to a three-month suspension of Iraq’s main Arabian Gulf export routes, which significantly reduced quantities due to the crisis of the Strait of Hormuz.
The Iraqi cabinet approved a deal on Tuesday between the Ministry of Oil and Syria for the transportation, storage, and handling of crude oil through the Mediterranean ports of Baniyas and Tartus.
The Iraqi government has also started construction of the Basra-Haditha pipeline, which will be part of a diversified oil export infrastructure.
The Basra-Haditha pipeline project has received $1.5 billion in finance from a deal between Iraq and China.
The pipeline’s capacity is expected to reach around 2.25 million barrels per day, utilizing 56-inch diameter pipes. This concept intends to improve domestic transportation and link to future export facilities.
The project intends to minimize reliance on the Strait of Hormuz by opening up a new route for oil shipments.
