Iraq may shift to pipelines to tackle possible closure of Strait of Hormuz
Baghdad (IraqiNews.com) – Regional tensions and Iranian threats to close the vital Strait of Hormuz may compel Iraq to reactivate outdated pipelines that previously carried a significant portion of its oil exports through Saudi Arabia and Syria.
A $9 billion pipeline via Jordan that is now on hold might possibly be revived, according to Arabian Gulf Business Insight (AGBI).
Iraq transports most of its crude oil exports via oil tankers through the Strait of Hormuz; however, Iran's ongoing threats to close the strait have caused concern in Baghdad.
Nabil Al-Marsoumi, an energy and economics professor at Basra University, told AGBI that Iraq has alternative possibilities, such as pipelines, but political factors have always outweighed economic ones.
Given the latest developments in the region, Iraq might seriously think about revitalizing these pipelines, according to Al-Marsoumi.
If the Strait of Hormuz is closed, experts believe that Iraq will be unable to export more than 17 percent of its oil. In contrast, Saudi Arabia and the UAE will still be able to export approximately 85 percent and 68 percent of their petroleum, respectively, thanks to the pipelines they have constructed for this purpose.
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