IEA Head Pitches Iraq-Turkey Pipeline to Bypass Hormuz: Hürriyet

Article content(Bloomberg) — International Energy Agency Executive Director Fatih Birol proposed building a new oil pipeline linking Iraq’s Basra oil fields and Turkey’s Mediterranean oil terminal in Ceyhan to shift the balance away from the Strait of Hormuz, according to Turkish newspaper Hürriyet.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“I believe a Basra–Ceyhan pipeline could be extremely attractive and a very important project for both Iraq and Turkey, as well as for regional supply security—especially from Europe’s perspective,” Birol said in an interview with Hürriyet, published on Sunday. “I also believe the financing issue can be overcome. Now is exactly the right time.”Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIran on Saturday reimposed restrictions on vessel traffic in the Strait of Hormuz, less than 24 hours after Tehran declared the waterway open to commercial ships. Several liquefied natural gas tankers reversed course while en route there after Iran warned ship captains that the vital channel was once again closed to maritime traffic.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentIraq relies on Hormuz to export oil from the Gulf port of Basra, which holds one of the world’s largest reserves at around 90 billion barrels and accounts for about 90% of the country’s oil exports, Birol told the newspaper.Article content“The vase has been broken once, and it’s very difficult to fix,” Birol said, referring to the Strait of Hormuz. A new oil pipeline “is a necessity for Iraq and an opportunity for Turkey. It is also a major opportunity for Europe in terms of supply security. I think this should be considered a strategic project.”Article contentFor such a project, Turkey and Iraq need to reach a political agreement, “which I believe is achievable,” he said, adding that securing financing for the project could also receive support from Europe. Article contentTurkey has already proposed extending a Turkish-Iraqi pipeline between Ceyhan and the Kirkuk oil fields in the north to the south as part of efforts to build a multi-billion dollar trade route that would stretch from the Faw Port in Iraq’s southern province of Basra to Turkey in the north. Separately, Turkey, Syria and Jordan recently agreed to modernize their railway and highway systems with the aim of eventually creating a contiguous corridor between southern Europe and the Persian Gulf.Article contentTurkey has emerged as a more viable option after the Israel–Hamas war stalled progress on the India–Middle East–Europe Economic Corridor, a US-backed project to build rail links across the Arabian Peninsula. With Houthi attacks disrupting Red Sea shipping and regional instability rising, the IMEC is effectively on hold.Article contentTrending Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking IMF sees Canada's fiscal position as strongest in G7 Economy Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News 'The impacts are massive': U.S. tariff change pushes Canadian manufacturers to the brink Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking IMF sees Canada's fiscal position as strongest in G7 Economy Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News 'The impacts are massive': U.S. tariff change pushes Canadian manufacturers to the brink Economy