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of 300,000 bpd until it was damaged and shut down in 2003. Ambitious e orts were made in 2007 and 2010 involving Gazprom subsidiary Stroytrangaz to rehabilitate the line, but nothing has been heard of these plans since.
e selection of Syria is a controversial one, particularly given that the UK has impounded the Iranian tanker e Grace 1, which London said was transporting crude to Banias, in contra- vention of eU sanctions.
Al-Monitor’s report also quoted the head of the Committee on oil and energy in the Iraqi parliament, Haybat al-Halboosi, as saying that the committee “does not know the details of the oil pipeline project between Iraq and Syria and is seeking to know its objectives from the compe- tent government agencies”.
Indeed, it would be a strange choice for Iraq, which is currently walking a tightrope between its reliance on Iranian gas for its domestic power sector and Western in uence in the Gulf, which, it will doubtless hope, will ensure safe passage of its crude to international markets.
Few options
Aside from these lengthy projects to establish meaningful routes through Jordan and Syria,
Baghdad has few other options.
Speaking in late 2015, then oil minister Abdul
Mahdi said that the idea of re-opening the Iraq Saudi Arabia Pipeline (ISAP) was still being con- sidered, but stressed that it was a matter “gov- erned by politics and the relations between the two countries primarily.”
ose talks appear to have gone nowhere, though, and cross-border trade has instead increased with Kuwait, though in the form of Iraq seeking to import Kuwaiti gas.
There has been talk of Iraq increasing its transport capabilities through Turkey, but with the Kirkuk-Ceyhan in need of attention, its repair is likely to be rst in line for investment.
e pressure is on Baghdad to ramp up its pipeline capacity and this will present large engineering contract opportunities. is was highlighted last week when reuters quoted the Middle east head of China State Construction engineering Corp. (CSCeC), Yu Tao, as saying that the rm believed it could sign at least one deal per year for Iraqi oil infrastructure.
With bombs in the restive nineveh province causing a large re on the Kirkuk-Ceyhan and forcing it out of operation in early July, Baghdad has plenty of incentive to act quickly.™
Map illustrating Iraqi oil and gas assets and infrastructure.
Week 29 23•July•2019 w w w . N E W S B A S E . c o m
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