Turkey seeks to maximize the Iraq-Turkey pipeline

Turkey is pushing for a stronger energy partnership with Iraq, and at the center of this effort is the Iraq-Turkey pipeline (ITP). 

Turkish Energy Minister Alparslan Bayraktar recently announced that the upcoming agreement between both countries should guarantee the pipeline reaches full capacity, which is approximately 1.6 million barrels per day, according to Argus.

A history of underutilization

The ITP has never operated at full capacity. Even during periods of normal operations, it transported an average of 400,000 to 450,000 barrels per day, well below its potential. 

Turkey has invested heavily in keeping the pipeline operational, yet disruptions and political challenges have prevented it from meeting its design limits.

Recent setbacks and the need for renewal

The pipeline was completely shut down in March 2023 after Ankara lost an international arbitration case and was ordered to pay $1.47 billion to Baghdad for “unauthorized exports” carried out between 2014 and 2018. 

With the current agreement set to expire in July 2024, Turkey is now looking for a more comprehensive deal. 

This new arrangement aims to expand cooperation beyond oil to include natural gas, petrochemicals, and electricity.

Expanding the pipeline’s reach

Bayraktar explained that the draft agreement presented to Iraq includes a plan to extend the pipeline further south. 

Most of Iraq’s oil fields are located in the Basra region, and connecting these areas to the pipeline could help fill it to maximum capacity. 

“It is not necessary for the entire pipeline to be filled with Iraqi oil, but expansion is key if we want to reach 1.6 million barrels per day,” Bayraktar stated.

Lessons from regional instability

The Turkish minister also pointed to the recent 12-day war between Israel and Iran, when the closure of the Strait of Hormuz became a very real possibility. 

Diversifying export routes, such as maximizing and expanding the Iraq-Turkey pipeline, would give Iraq greater security and flexibility for its crude oil exports.

Looking ahead

Iraq confirmed it has received Turkey’s proposal to renew and expand the energy agreement. 

The plan is ambitious, with July 2026 set as the deadline for the full pipeline upgrade, although Bayraktar emphasized that finishing earlier would be preferable. 

If completed, the project would not only improve Iraq’s export capacity but also strengthen Turkey’s role as a strategic energy corridor to international markets.

The bigger picture

This renewed focus on the Iraq-Turkey pipeline reflects a broader trend in the oil and gas industry: the need to secure infrastructure against political risks and bottlenecks. 

For both Iraq and Turkey, ensuring the reliability and capacity of this pipeline could prove critical in stabilizing supply chains and boosting economic growth in the region.

Turkey seeks to maximize the Iraq-Turkey pipeline