Iraq has commenced work on a major oil pipeline linking Basra to Haditha, with a planned capacity of 2.5 million barrels per day, the state news agency reported on Friday, citing the oil ministry. The project is part of the OPEC producer's efforts to expand and diversify its export routes amid regional instability.
Project Details and Budget
Approximately $1.5 billion has been allocated for the pipeline, though the pace of construction will depend on securing further budget allocations, according to the ministry. The 700-kilometer (435-mile) pipeline will transport crude for export through multiple routes, including Syria's Baniyas, Turkiye's Ceyhan, and Jordan's Aqaba, while also supplying refineries along its path, a ministry spokesperson said.
Strategic Importance
On Sunday, Prime Minister Mohammed Shia al-Sudani chaired a meeting to follow up on the Basra-Haditha pipeline project, which was approved in 2024. He stated that the pipeline was conceived as a proactive step anticipating current regional conditions and guarding against potential disruption to existing export routes. The closure of the Strait of Hormuz due to the Iran war has curtailed oil exports from Saudi Arabia, the UAE, Kuwait, and Iraq, sending prices higher.
Resumption of Kirkuk-Ceyhan Pipeline
Crude exports through the Kirkuk–Ceyhan oil pipeline resumed in March, after Baghdad and the Kurdistan Regional Government agreed on restarting flows. Baghdad is also working to revamp a disused pipeline that would allow oil to be pumped directly to Turkiye's Ceyhan port without passing through the Kurdistan region.
