Iraq and Gulf nations seek energy export alternatives amid Strait of Hormuz risks

Regional instability in the Strait of Hormuz has prompted Iraq and Gulf nations to accelerate the search for alternative oil and gas export routes. While existing infrastructure provides partial relief, these alternatives face security, technical, and financial hurdles.

Key existing routes include Saudi Arabia’s East-West Pipeline, which transports crude to the Red Sea, and the UAE’s use of the Port of Fujairah to access open waters. Iraq utilizes the pipeline to the Turkish port of Ceyhan, though this remains subject to political and financial disputes between Baghdad, Ankara, and the Kurdistan Regional Government. Additionally, discussions continue regarding a proposed $15 billion pipeline project connecting Iraqi fields to the Syrian port of Banias.

In a related move to bolster domestic energy security, Iraq’s North Oil Company has signed a 25-year contract with Kipt to develop the Ajil oil field in Salahuddin province. The project aims to increase gas production from 135 million to 300 million standard cubic feet per day and raise oil production from 30,000 to 40,000 barrels per day. This initiative is designed to maximize hydrocarbon resources, support electricity generation, and reduce Iraq’s reliance on imported gas.