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Is the revival of the Iraq-Lebanon oil link just a pipe dream?

Is the revival of the Iraq-Lebanon oil link just a pipe dream?
MENA
4 min read
01 July, 2025
The proposal has been raised multiple times over the past few years in talks between successive Lebanese officials and their Iraqi counterparts.
Tripoli's refinery, built in 1940 to process Iraqi crude from the Kirkuk fields, was nationalised by Lebanon in the 1970s and ceased operations in 1992. [Getty]

A proposal to revive the Iraq-Syria-Lebanon oil pipeline, originating in Kirkuk and terminating in Tripoli, Lebanon has been met with skepticism in both countries, though this has not daunted officials in Beirut from pursuing at least a feasibility study into the project, made theoretically possible by the regime change in Syria and the end of US sanctions on the country through which the hydrocarbon corridor passes. 

The proposal has been raised multiple times over the past few years in talks between successive Lebanese officials and their Iraqi counterparts, but remains stuck in limbo. Recent geopolitical developments, however, have rekindled the idea.

Tripoli's refinery, built in 1940 to process Iraqi crude from the Kirkuk fields, was nationalised by Lebanon in the 1970s and ceased operations in 1992. Today, it functions merely as a fuel import terminal.

George Akoury, advisor to Lebanon's Minister of Energy, confirmed to The New Arab that preliminary steps are being initiated in Beirut, marking the first official acknowledgment of intent from Lebanon's end.

Akoury tied the momentum to a notable shift in US policy, "With the United States moving to lift Caesar Act sanctions on Syria, we now have a viable path to import oil, gas, and energy resources through Syrian territory. Therefore, we will begin working with the Iraqi side on the oil importation and Tripoli refinery file."

But the consultant was quick to temper expectations, describing the path ahead as contingent and deeply technical.

"This will include multiple steps," Akoury said. "A field assessment of the existing pipeline infrastructure to verify its condition and operability; a review of current agreements, with the option to amend or sign new accords, should existing frameworks prove insufficient; and a comprehensive study of the Tripoli refinery, both to determine the scope of needed rehabilitation and assess its economic feasibility under current conditions."

Akoury stressed that "no figures or cost estimates can be provided before these studies are complete," underscoring the nascent stage of Lebanon's engagement with the project.

But Maroun Al-Khouli, coordinator for Lebanon's Coalition for Good Governance, described in comments given to local media any plan to revive or build a new refinery as economically unviable in the present form. Lebanon consumes about 100,000 barrels of oil daily, yet the refinery's existing capacity is only 21,000 barrels per day.

Revamping the refinery to modern standards would require an estimated $1.5 billion investment, based on studies dating back over a decade. Given inflation and the deterioration of infrastructure, the cost is expected to be significantly higher now.

Restoring the Iraq-Syria-Lebanon pipeline meanwhile poses further complications. The original pipeline has suffered extensive damage due to years of conflict. While Iraq's segment up to Haditha remains largely intact, the Syrian section's status is uncertain and would demand considerable rehabilitation.

Controversy in Iraq

On the Iraqi side, the possibility of Iraq financing or participating in an oil refinery project in Tripoli, Lebanon, alongside a pipeline crossing Syria, has stirred political unease. Opposition members of parliament are pressing the government for clear answers as speculation mounts amid persistent silence from Iraqi officials. 

The controversy emerged after opposition MP Mustafa Sanad shared a document that was allegedly said to originate from Iraq's Ministry of Oil, outlining plans for a refinery capable of processing 70,000 barrels per day in Tripoli. According to the documents, crude oil could initially be delivered by tankers or road transport until a pipeline linking Iraq, Syria, and Lebanon is constructed. The New Arab could not verify the document's authenticity. 

Both the Iraqi Ministry of Oil and the Prime Minister's office have denied any knowledge or official confirmation of the project. Abdulsahib al-Hasnawi, spokesperson for the Ministry of Oil, said to TNA that no information was available, while the Prime Minister's spokesman Basim Al-Awadi admitted he did not have sufficient details to comment.

MP Alaa Ouda al-Nashi, representing the southern Dhi Qar province, formally requested Prime Minister Mohammed Shia al-Sudani clarify the government's position in May. 

In a publicly shared letter, al-Nashi criticised the prioritisation of foreign ventures over vital domestic energy infrastructure. She urged the government to outline its strategic priorities clearly to avoid further delays to essential projects inside Iraq.

Meanwhile, Fadi al-Shammari, political advisor to the Prime Minister, dismissed the refinery claims as unfounded rumours. He emphasised that any overseas refinery initiative would require Cabinet approval and detailed feasibility studies, which have not taken place.

An Iraqi oil expert interviewed by TNA argued that restoring an ageing refinery and pipeline network is "a costly mistake". He suggested that Iraq's renewed focus on the Syrian export corridor may be a tactic to pressure Turkey to resume oil exports via the Kirkuk–Ceyhan pipeline, which remains inactive amid ongoing legal and diplomatic disputes.

Iraqi Prime Minister Sudani's recent visit to Turkey reflects Iraq's growing urgency to diversify oil export routes beyond the vulnerable Gulf terminals. Turkish President Recep Tayyip Erdogan has expressed willingness to restart shipments through Ceyhan port, which has been largely dormant since March 2023 when Ankara halted Kurdish crude exports following an arbitration ruling favouring Baghdad.

(Additional reporting by Nagham Rabih)

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