Iraq announced plans to expand pipeline crude exports to 770,000 barrels per day from the current 220,000 bpd, with the increase expected within two and a half months, according to a government statement released Tuesday.
The initiative is presented as part of a broader effort to diversify the country's export pathways and reduce reliance on Gulf shipping lanes. The government statement cites the closure of the Strait of Hormuz as a factor in reducing shipments via the southern route and prompting Baghdad to pursue alternative channels.
At present, Iraq exports crude through the Turkish Mediterranean port of Ceyhan. The announced expansion would add a pipeline-based route that routes shipments to Mediterranean ports farther west. Specifically, Iraq said it plans to sign an agreement with Syria to transport, store and handle shipments of Basrah Light, Basrah Medium and Basrah Heavy crude through the Syrian Mediterranean ports of Baniyas and Tartous.
In addition to the planned agreement, the statement said Baghdad intends to establish a representative office of the oil ministry to oversee export operations conducted via this route. The office is intended to manage the logistical and administrative functions associated with the new export corridor, according to the government statement.
The plan outlines three named crude grades - Basrah Light, Basrah Medium and Basrah Heavy - that would be handled through the Mediterranean terminals identified. The statement frames the expansion as a tactical shift in export logistics aimed at creating alternative corridors to the existing Turkish route and to routes affected by developments in the Gulf.
Details beyond the declaration of intent - including contractual timelines, operational handover, or the exact sequencing of shipments through the new route - were not specified in the government statement. The announcement focuses on the target export capacity, the intended legal and operational arrangements with Syria, and the establishment of a ministry representative to control the route's operations.
Bottom line: Iraq is moving to scale pipeline exports to 770,000 bpd within 2.5 months, pursue a formal arrangement with Syria to use Baniyas and Tartous ports for Basrah crude grades, and set up a ministry office to manage the route, as stated by the government.