DAMASCUS

The Syrian Petroleum Company said Saturday that the volume of Iraqi fuel oil flowing to the Baniyas refinery in western Syria is expected to reach about 500,000 metric tons per month.

The move could turn Syria into a transit hub for Iraqi oil exports via the Mediterranean, as the Strait of Hormuz faces disruptions linked to the US-Israeli war on Iran.

The announcement came in remarks to Anadolu by Safwan Sheikh Ahmad, director of corporate communications at the Syrian Petroleum Company, who outlined details of the recent oil agreement between Syria and Iraq.

Ahmad said Syria is restoring its role as a “safe regional corridor for energy” and highlighted the readiness of its infrastructure to receive and transport oil and gas supplies from neighboring countries to global markets.

“The average monthly flow of Iraqi fuel oil would reach 500,000 metric tons,” he added.

Fuel oil is a mixture of residual oils left after crude oil distillation and is used as a heavy fuel for generating heat, electricity, or mechanical power.

Ahmad noted that the first convoy includes 299 tankers, of which 176 have already entered through the Al-Tanf–Al-Walid border crossing.

He described the current phase as a “trial period,” adding, “If things succeed, we will immediately move to signing long-term contracts.”

Responding to a question about damaged infrastructure, he said national technical teams have rehabilitated key facilities to handle the incoming volumes.

He acknowledged that stations T2 and T3 were damaged during the war in Syria but said station T4 is “operating efficiently” and currently serves as the backbone for transporting supplies from Iraq to the Baniyas refinery.

Amid global energy disruptions, Sheikh Ahmad said Damascus is positioning itself as an “alternative corridor to the Strait of Hormuz,” which has recently faced instability.

He described the Kirkuk–Baniyas pipeline route as “a strategic solution” linking Iraqi energy sources to the Mediterranean, calling the agreement “a starting point for turning Syria into a regional oil export hub.”

Asked about possible international sponsorship or political dimensions, Ahmad denied any external involvement, saying: “This is a direct technical agreement between Iraq’s SOMO company and the Syrian Petroleum Company to make this important corridor succeed.”

Beyond transit volumes, he said the deal would generate financial returns for Syria “by boosting foreign currency revenues” through transit fees.

On whether the agreement could ease Syria’s domestic fuel shortages, he said: “We currently import fuel oil by sea, and if the Iraqi supply offers competitive pricing, we will have the right to purchase it to meet local demand.”

He concluded by stressing that Syria is “open to all neighboring countries” to export oil, gas, and fuel through its territory.

On Wednesday, the first convoy of Iraqi fuel tankers entered Syria via the Al-Tanf–Al-Walid crossing toward the Baniyas refinery, in preparation for export.

The development came after the crossing was reopened after an 11-year closure due to the ISIS (Daesh) terror group's takeover of the border area in May 2015.

On Monday, Syrian President Ahmad al-Sharaa said Syria aims to serve as a secure land corridor for supply chains and energy flows, highlighting its strategic position linking East and West.

On Monday, Syrian President Ahmad al-Sharaa said during a press conference in Berlin with German Chancellor Friedrich Merz that Damascus aims to serve as a secure land corridor for supply chains and energy flows, highlighting its geographic position linking East and West.

He said Damascus is engaged in discussions with regional countries to explore safe alternatives for supply chains and energy transport.

The shift comes as global shipping through the Strait of Hormuz has sharply declined in the wake of the US-Israeli war on Iran, prompting countries to consider alternative maritime and land routes.

On March 2, Iran announced restrictions on navigation through the strategic waterway and warned it would target vessels attempting to pass without coordination.

About 20 million barrels of oil pass daily through the strait, and disruptions have driven up shipping and insurance costs, raised oil prices, and fueled concerns over global economic impacts.

The US and Israel have maintained an air offensive on Iran since Feb. 28, killing so far over 1,340 people, including then-Supreme Leader Ali Khamenei.

Iran has retaliated with drone and missile strikes targeting Israel, along with Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation.

*Writing by Mohammad Sio in Istanbul