Syria has begun delivering imported petrol to Iraq, state news agency SANA reported on Sunday. The Syrian Petroleum Company is transporting the petrol through the Banias oil terminal on Syria's Mediterranean coast. This move is part of a renewable three-month agreement to secure energy supplies amid disruptions to maritime traffic through the Strait of Hormuz. The agreement was made to support Iraq's oil exports, which have been severely impacted by the closure of the Strait of Hormuz.
According to Syrian Petroleum Company official Ahmed Qubbaji, operations began on Thursday with a first batch of 57 tankers. The goal is to increase the number of trucks crossing the Al-Tanf land border to Iraq to 200 per day. The Qatari firm UCC was responsible for purchasing the petrol from various global sources, with Syria then transporting it for a fee. This arrangement supports Syria's role as a corridor for importing, exporting, and transporting materials and energy between regional countries.
The closure of the Strait of Hormuz has significantly impacted Iraqi oil exports. In April, Baghdad began shipping crude through Syria by truck to circumvent the strait, although the amounts are far below what used to travel by sea. Up to 1,200 Iraqi oil tankers transit Syria daily, according to Qubbaji. This new arrangement will help Iraq meet its energy needs despite the disruptions in the region.
Syria's new authorities, who took power in December 2024, have been working to reboot the country's economy and rebuild its infrastructure after more than a decade of war. The country is also finalizing negotiations with Iraq on a contract to restore a key oil pipeline between the countries. This pipeline will further enhance Syria's role as a vital energy transportation hub in the region.
The Syrian Petroleum Company's efforts to transport petrol to Iraq are part of a broader strategy to revitalize the country's economy. The company's operations will not only generate revenue but also create new job opportunities for Syrians. The agreement with Iraq is a significant step towards strengthening economic ties between the two countries.
The disruptions to maritime traffic through the Strait of Hormuz have had far-reaching consequences for the region. Egypt, a major player in the region, has been working to support the rehabilitation of Syria's oil and gas sector. The country has also been investing in its own energy infrastructure, including the development of new gas fields in the Mediterranean and Western Desert.
The agreement between Syria and Iraq is set to have a positive impact on the regional energy landscape. With Syria's strategic location, the country is poised to play a critical role in ensuring the stability of energy supplies in the region. As the global energy market continues to evolve, Syria's role as a key energy transportation hub is likely to become increasingly important.
Key points
- Syria has started delivering imported petrol to Iraq through its Mediterranean coast.
- The agreement is part of a renewable three-month plan to secure energy supplies amid disruptions to maritime traffic through the Strait of Hormuz.
- Syria and Iraq are finalizing negotiations on a contract to restore a key oil pipeline between the countries.
