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Market Chatter: New Iraq-Syria Crude Pipeline to Cost $15 Billion, Take Over 4 Years

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A proposed Iraq-Syria crude oil pipeline will cost at least $15 billion and take four years to complete, but delays are possible because the project requires new infrastructure rather than rehabilitating damaged assets, Reuters reported Monday.

The timeline will may have to factor in clearing of old infrastructure and acquiring land use rights from the new Syrian administration, a Reuters source told the news agency. The existing pipeline that links Iraq's northern Kirkuk region to Syria's Mediterranean port of Banias was damaged by wars and last regularly operated in the 1980s.

The US has reportedly welcomed the reconstruction of the pipeline, which will increase capacity to 2 million barrels per day from the previous 300,000 barrels per day. US energy major Chevron (CVX), TI Capital, and Qatar's UCC Holding have signed memorandums of agreement with Iraq and Syria for project evaluation.

The energy ministries of Iraq and Syria did not immediately respond to' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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