Syria and Iraq advance regional energy integration

Syria has launched a new transit operation to transport imported gasoline to Iraq through the Baniyas oil terminal, marking another step in the growing energy cooperation between the two neighboring countries.

The initiative comes as regional supply chains continue to adapt to disruptions in maritime trade caused by the conflict in the Middle East and the prolonged instability affecting shipping through the Strait of Hormuz.

Three-month agreement to secure fuel supplies

Syrian authorities announced that the Syrian Petroleum Company has begun transporting gasoline imported on Iraq’s behalf through the Baniyas oil terminal under a three-month agreement that can be renewed. The arrangement was introduced to help maintain Iraq’s gasoline supplies amid disruptions to maritime traffic through the Strait of Hormuz.

The Syrian Arab News Agency (SANA) quoted the Deputy Executive Director for Transport and Storage at the Syrian Petroleum Company, Engineer Ahmad Qabbahji, as saying: “The transportation of gasoline to Iraq began on Thursday, with an initial shipment of 57 tanker trucks. Work is underway to increase operational capacity to approximately 200 tanker trucks per day via the al-Tanf border crossing.” The phased approach is intended to verify operational readiness, monitor fuel quantities, and streamline transportation procedures before reaching full capacity.

The gasoline is procured internationally by Qatar-based UCC Holding from multiple global suppliers. Syrian authorities are responsible for receiving the shipments at Baniyas, handling storage and loading operations, and transporting the fuel overland into Iraq in exchange for transit fees.

Baniyas becomes a key transit hub

To support the operation, the Syrian Petroleum Company has upgraded facilities at the Baniyas terminal within a short period. Dedicated loading areas have been prepared, alongside eight loading bays capable of filling eight tanker trucks simultaneously.

Officials stated that ten fuel tankers are currently involved in supplying the project, with two vessels already unloaded into storage facilities at Baniyas while additional ships continue to arrive. Loading and unloading operations are taking place around the clock under safety and customs procedures designed to ensure the secure movement of fuel.

Before each truck departs, authorities inspect the tankers to ensure they are clean and free of contaminants, verify fuel quantities and weight, seal the cargo, complete customs documentation, and conduct final safety inspections before the convoy proceeds toward the Iraqi border.

Expanding cross-border energy logistics

The gasoline operation follows an earlier initiative launched by Iraq in April to transport fuel oil across Syrian territory for export after shipping through the Strait of Hormuz became severely disrupted. Since then, cross-border fuel movements have increased significantly.

Syrian officials estimate that between 1,000 and 1,200 Iraqi oil tanker trucks currently pass through Syrian territory each day, although daily volumes fluctuate depending on weather conditions, transportation logistics, and the arrival of shipments.

Authorities argue that these transit operations generate direct financial returns for both the Syrian Petroleum Company and the Syrian state while strengthening Syria’s role as a regional corridor for the movement of petroleum products and other strategic commodities.

Officials also indicated that additional products, including diesel, fuel oil, crude oil, naphtha, coal, and sulfur, are being considered for future transit arrangements as logistical capacity expands.

Supporting Syria’s economic recovery

The expansion of energy transit operations comes as Syrian authorities seek to revive an economy severely weakened by years of conflict. Restoring infrastructure, attracting investment, and increasing transit revenues have become central components of the country’s economic recovery strategy.

Officials view Syria’s transportation network, ports, and existing petroleum infrastructure as assets that can generate revenue through logistics and regional trade even before large-scale domestic energy production fully recovers.

By facilitating the movement of imported fuel into Iraq while simultaneously handling Iraqi petroleum exports, Syria is attempting to position itself as an increasingly important logistics hub connecting the Gulf, Iraq, Jordan, Lebanon, and the Mediterranean.

Regional energy cooperation beyond fuel transport

The latest gasoline agreement forms part of broader discussions aimed at rebuilding regional energy infrastructure following years of conflict and economic disruption.

Syrian officials confirmed that work is continuing to rehabilitate the Arab Gas Pipeline (AGP) toward the Syrian-Jordanian border while also preparing a branch connection leading to Lebanon. According to the Syrian Petroleum Company, the Lebanon branch is expected to become technically ready once the remaining engineering work is completed.

These projects reflect efforts to restore regional energy networks that previously connected several Middle Eastern countries through shared pipeline infrastructure.

Kirkuk-Baniyas pipeline returns to the agenda

Alongside the new trucking operations, Syria and Iraq continue advancing plans to revive the historic Kirkuk-Baniyas oil pipeline, one of the region’s most significant energy infrastructure projects.

Originally commissioned in 1952, the pipeline transported Iraqi crude oil from the Kirkuk oil fields to Syria’s Mediterranean port of Baniyas before experiencing repeated shutdowns and ultimately ceasing operations in 2003 following the Iraq War.

Syrian officials announced that a memorandum of understanding (MoU) has already been signed with Iraq regarding the project, while negotiations have reached the final stages of converting the agreement into a binding implementation contract.

A separate memorandum was also signed with an international consortium that includes Chevron, Qatar-based UCC Holding, and TI Capital to undertake the technical and financial studies required for rehabilitating the pipeline and its associated infrastructure.

If implemented, the rehabilitation project would restore an important export route for Iraqi oil to the Mediterranean, reducing dependence on Gulf shipping lanes while enhancing Syria's role as a regional energy transit country.

The launch of gasoline transportation from the Baniyas oil terminal to Iraq represents more than a temporary response to shipping disruptions in the Strait of Hormuz. It signals an expanding framework of energy cooperation between Syria and Iraq that combines immediate fuel supply needs with longer-term infrastructure ambitions.

As transit volumes increase and discussions over the rehabilitation of the Kirkuk-Baniyas pipeline continue, both countries are seeking to establish alternative energy corridors capable of improving supply security and strengthening regional connectivity. For Syria, the initiative also offers an opportunity to generate much-needed revenue, restore the use of strategic infrastructure, and reinforce its position as a key transit route within the evolving Middle Eastern energy landscape.