Sources: New Syria-Iraq Crude Pipeline Still Years Away

FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo
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Sources: New Syria-Iraq Crude Pipeline Still Years Away

FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo
FILE PHOTO: A worker checks an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani/File Photo

Iraq's plans to export oil via a pipeline through Syria to avert future disruptions in the Strait of Hormuz will likely require four years of construction and cost at least $15 billion, sources with knowledge of the project told Reuters.

US officials and energy executives are billing the plan, which is receiving initial support for feasibility studies from a consortium including Chevron, as part of a strategy to reduce the industry's reliance on a waterway that has been largely shut by the Iran war.

"Over the next two years, the strait is going to become irrelevant. It is going to become just another body of water," US Treasury Secretary Scott Bessent said last week.

While a fifth of the world's oil and liquefied natural gas was shipped through Hormuz before the conflict, Bessent said "more than 50% or 70%" of those exports would instead be exported via underground pipelines.

But two sources directly involved in ‌the project told Reuters ‌the plans for the Iraq-Syria pipeline would take twice that long due to the need ‌for ⁠new infrastructure and ⁠could face other hurdles.

Both sources asked not to be named due to the sensitivity of the matter.

NEW INFRASTRUCTURE TO REPLACE EXISTING WAR-DAMAGED PIPELINE

Iraq has been among the countries most affected by the Hormuz shutdown.

It exported around 3.6 million barrels of oil per day before the war, mainly through Gulf terminals near Basra, but shipped just 35.5 million barrels in total via Hormuz in July, according to state-run oil firm SOMO.

A pipeline linking Iraq's northern Kirkuk region to Syria's Mediterranean port of Banias already exists but was badly damaged by wars in Iraq and Syria and has not been in regular use since the 1980s.

Both sources said the plan would require laying entirely ⁠new infrastructure rather than rehabilitating the existing pipeline and cost at least $15 billion.

While part of the ‌new pipeline would run largely along the same Kirkuk-Banias route, intact sections of ‌that pipeline are not compatible with newly developed specifications and would be unusable, one of the sources said.

The second source said the project ‌would include developing an entirely new integrated crude oil pipeline system that would link Iraq's southern and northern fields to a ‌central hub in Haditha in western Iraq, then onwards to Banias.

The US has welcomed the "rehabilitation and reconstruction" of the pipeline, saying it will have initial transport capacity of 2 million bpd of crude oil.

That would imply a major expansion of the old pipeline's capacity of about 300,000 bpd, which is less than a tenth of the oil volume Iraq exported through the Strait of Hormuz before the Iran war. Iraq has also ‌restarted oil exports from its Kirkuk fields via pipeline to Türkiye’s Ceyhan port with targeted capacity of around 250,000 bpd.

Both sources said work on the Iraq-Syria pipeline would take around ⁠four years, though one added ⁠that the timeline may also need to accommodate clearing old infrastructure and acquiring fresh land use rights from Syria's new administration.

ANOTHER POSSIBLE 'ACCESS TO MARKET' BUT STUDIES STILL NEEDED

Syria and Iraq have both signed separate memorandums of understanding with a consortium comprised of US major Chevron, TI Capital and Qatar's UCC Holding to carry out technical and financial studies in preparation for the project.

Iraq's oil ministry and state-owned Syrian Petroleum Company did not respond to Reuters requests for comment on the project and the sources' timeline and cost assessments. TI Capital and UCC Holding did not immediately respond to requests for comment. Chevron pointed to an earlier statement about the preliminary agreement and said it does not comment on details related to commercial matters.

During a press briefing last month, a Chevron executive said the project could offer "another access route to market" through the Mediterranean. The executive said any pipeline would also need to connect to Iraq's southern fields of West Qurna 2 and Nassiriya, which Chevron is in negotiations to enter.

Chevron still needs to complete technical studies to determine whether the existing Iraq-Syria pipeline would need refitting, expanding or rebuilding, the executive said.

The company has not yet given estimates of the project's future export capacity.

"Usually, as these pipelines go, it's not 100% capacity available on day one," the executive said.



OPEC+ Agrees to Keep November Oil Output Targets Steady

FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
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OPEC+ Agrees to Keep November Oil Output Targets Steady

FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo
FILE PHOTO: A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28 , 2024. REUTERS/Leonhard Foeger/File Photo

OPEC+ agreed to keep oil production targets steady for November at a meeting on Sunday, the producer group said, in line with expectations that further output policy adjustments are unlikely until next year.

Seven core members of the group comprising the Organization of the Petroleum Exporting Countries and allies including Russia made the decision for November in a brief online meeting on Sunday. The core members are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

Oil prices had dropped on Friday after European leaders agreed to US President Donald Trump's request to release diesel reserves. Even so, Brent crude remains above $100 a barrel, up from about $73 before the Iran war started in late February.

The Iran war has also delayed the group's output capacity review — crucial to determine members’ 2027 output quotas — because it has thrown estimates of future production potential into uncertainty, industry sources told Reuters last week.

OPEC+ has been raising output targets for much of 2026 after years of production cuts, but most of the increases stayed on paper because of the Middle East conflict.

The seven core OPEC+ members pumped 25 million barrels per day in August, up 630,000 bpd from July, yet still roughly 5 million bpd below prewar levels in February, OPEC data shows.

The seven hold their next meeting on November 1.

OPEC+ still has about 2 million bpd of output cuts in place covering most members. It needs the result of the capacity review to decide how to distribute increases and any changes to output are unlikely before 2027, sources have said.

A separate OPEC+ ministerial group called the Joint Ministerial Monitoring Committee (JMMC), which does not decide policy, also met on Sunday to review the market.


Saudi Arabia Announces Results of Natural Gas Distribution Licensing Competition in Al-Kharj

A worker at one of Saudi Aramco's gas facilities.
A worker at one of Saudi Aramco's gas facilities.
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Saudi Arabia Announces Results of Natural Gas Distribution Licensing Competition in Al-Kharj

A worker at one of Saudi Aramco's gas facilities.
A worker at one of Saudi Aramco's gas facilities.

The Ministry of Energy today announced the results of a competition for a license to establish, own, and operate a natural gas distribution network in the industrial city of Al-Kharj in central Saudi Arabia.

The ministry had previously invited interested investors to participate in the competition to obtain the license and completed the procedures for qualifying bidders, launching the competition, and evaluating the bids.

As part of the competition, Natural Gas Distribution Company was awarded a license to establish, own, and operate the distribution network in the industrial city of Al-Kharj.

The competition will contribute to the objectives of the Liquid Fuel Displacement Program and the replacement of liquid fuels with natural gas, with the aim of maximizing the economic, environmental, and social benefits that the Kingdom derives from its petroleum resources as part of Vision 2030.

The launch of the competition is part of the ministry's efforts to strengthen the natural gas sector's infrastructure and stimulate investment in the sector by creating an attractive competitive environment that enables beneficiaries to access natural gas and improves the quality of services provided.


What Does Saudi Exchange’s New Market Order Mechanism Mean?

An investor walks past the "Tadawul" logo in the Saudi market (Reuters)
An investor walks past the "Tadawul" logo in the Saudi market (Reuters)
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What Does Saudi Exchange’s New Market Order Mechanism Mean?

An investor walks past the "Tadawul" logo in the Saudi market (Reuters)
An investor walks past the "Tadawul" logo in the Saudi market (Reuters)

Saudi Exchange began implementing an updated market order mechanism on October 4, 2026, in the Main Market and Nomu-Parallel Market, in a move aimed at improving execution efficiency and making better use of available market liquidity.

What is a market order?

A market order is a buy or sell order executed immediately at the best available prices in the order book, without the investor specifying a particular price.

This type of order is typically used when an investor prioritizes speed of execution over obtaining a specific price.

How did the previous mechanism work?

Previously, a market order was executed against the quantity available at the best price only.

For example, if an investor wanted to buy 10,000 shares and only 3,000 shares were available at the best price, those 3,000 shares would be executed, while the remaining quantity would be converted into a limit order at the price of the last executed portion.

What has changed?

Under the new mechanism, a market order can now be executed across multiple price levels, within a range of up to five price ticks starting from the best available price.

This allows the order to access additional liquidity available at nearby price levels, rather than being limited to the quantity available at the best price alone.

What happens if the entire order is not executed?

Once the maximum permitted range is reached, or if no additional quantities are available within the specified range, the remaining unexecuted quantity is converted into a limit order at the price of the last execution.

What is the purpose of the update?

Saudi Exchange said the update aims to:

  • Increase the quantities executed immediately.
  • Improve the use of available market liquidity.
  • Reduce the likelihood of large portions of orders remaining unexecuted.
  • Enhance the efficiency of the trading mechanism.
  • Support market depth and improve the investor experience.

Does the update apply to all markets?

No. The update applies only to shares listed on the Main Market and Nomu-Parallel Market. It does not apply to the derivatives market, which will continue to use the current mechanism.

Why has the update attracted investors' attention?

The mechanism used to execute orders directly affects the speed of trade execution and the efficiency of access to liquidity, particularly for stocks with gaps between price levels or limited trading volumes.