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US Backs Revival of KirkukBaniyas Pipeline

Washington says the plan is meant to create a way to export Iraqi oil that bypasses the Strait of Hormuz and reduces Iran’s transit leverage.

Overview

  • In mid-July, US officials and Iraqi leaders moved to formalize talks and an MoU is expected between Iraqi Prime Minister Ali al-Zaidi and US firm TI Capital during a White House meeting.
  • Iraq’s cabinet on July 5 approved preliminary agreements that clear the way for a USQatari‑commercial consortium to study rebuilding the roughly 800–880 km line.
  • Reporting identifies a consortium including TI Capital, Chevron and Qatar’s UCC, with reconstruction cost estimates of $4.5 billion to $8 billion and a projected 2–3 year work timeline.
  • Iraq has already sent small overland shipments through Syria, with initial volumes reported at about 10,000 to 15,000 barrels per day while full-scale flows remain years away.
  • Major barriers remain: security threats from Iran‑aligned militias and ISIS cells, the need for formal contracts and financing, and logistics and insurance challenges that could limit the pipeline’s near-term market impact.