Damascus: The Syrian Petroleum Company announced that it anticipates a monthly transit of approximately 500,000 metric tons of Iraqi fuel oil to the Baniyas refinery in western Syria. This development positions Syria as a potential transit hub for Iraqi oil exports via the Mediterranean, amid disruptions in the Strait of Hormuz due to the ongoing US-Israeli conflict with Iran.
According to Anadolu Agency, Safwan Sheikh Ahmad, Director of Corporate Communications at the Syrian Petroleum Company, revealed details of the recent oil agreement between Syria and Iraq. Ahmad emphasized Syria's revival as a 'safe regional corridor for energy' and underscored the country's infrastructure readiness to facilitate the flow of oil and gas supplies from neighboring regions to global markets.
Ahmad elaborated that the first convoy, comprising 299 tankers, has already seen 176 entering through the Al-Tanf-Al-Walid border crossing. He described the current operations as a 'trial period,' with a potential transition to long-term contracts if the initial phase proves successful. The infrastructure, particularly stations T2 and T3, has undergone rehabilitation following wartime damages, while station T4 is operationally efficient, serving as a critical link for transporting Iraqi supplies to the Baniyas refinery.
Amid the global energy crisis, Ahmad stated that Damascus is positioning itself as an 'alternative corridor to the Strait of Hormuz,' which has faced recent instability. The Kirkuk-Baniyas pipeline is considered a 'strategic solution' for connecting Iraqi energy sources to the Mediterranean, marking a step toward establishing Syria as a regional oil export hub. Despite speculations, Ahmad clarified that the agreement is strictly a technical collaboration between Iraq's SOMO company and the Syrian Petroleum Company, devoid of international sponsorship or political influences.
The agreement is expected to yield financial benefits for Syria by augmenting foreign currency revenues through transit fees. Regarding domestic fuel supply, Ahmad noted that if the Iraqi supply offers competitive pricing, Syria may consider purchasing it to alleviate local fuel shortages. He reiterated Syria's openness to exporting oil, gas, and fuel through its territory to neighboring countries.
The entry of the first convoy of Iraqi fuel tankers into Syria via the Al-Tanf-Al-Walid crossing marks a significant milestone, as the border was reopened after an 11-year closure due to the ISIS terror group's control of the area in May 2015. President Ahmad al-Sharaa highlighted Syria's strategic position and its potential to serve as a secure land corridor for supply chains and energy flows, during a joint press conference in Berlin with German Chancellor Friedrich Merz.
This strategic shift comes as global shipping through the Strait of Hormuz has declined sharply following the US-Israeli conflict with Iran, prompting a search for alternative routes. Iran's restrictions on navigation through the strait and retaliatory strikes against regional countries have escalated tensions, impacting global markets and maritime routes.