Türkiye, Iraq step up energy integration through new oil and gas pipelines: Report

Türkiye is advancing plans for a major energy partnership with Iraq, proposing the construction of new oil and natural gas pipelines from Basrah to the Mediterranean port of Ceyhan, along with expanded electricity cooperation and short-term gas supply arrangements, Energy and Natural Resources Minister Alparslan Bayraktar said in an interview.

Speaking to S&P Global Commodity Insights, Bayraktar noted that Türkiye and Iraq have reached a preliminary agreement covering crude and gas pipelines, a cross-border electricity transmission line, and interim natural gas supplies from Türkiye to Iraq. These initiatives are expected to be integrated into the broader Development Road project, which aims to connect Asia and Europe through Iraq’s transportation and energy infrastructure.

Türkiye has pledged $17.9 billion to the Iraq Development Road project, seeking to strengthen its position as a regional hub while deepening economic and strategic ties with its neighbors.

Integrated oil, gas, and electricity plans

According to the proposed route, energy resources would be transported from Basrah northward to Haditha and onward to Silopi in southeastern Türkiye, largely avoiding northern federal regions of Iraq.

From Silopi, they would continue to the export terminal at Ceyhan. While a pipeline already operates between Silopi and Ceyhan, Bayraktar noted that without a connection to the Basrah fields, it cannot reach its maximum potential of 1.5 million barrels per day.

On the natural gas front, Bayraktar explained that Türkiye’s transmission system is already capable of delivering up to 5 billion cubic meters to the Iraqi border. In the short term, Türkiye intends to supply natural gas for electricity generation in Iraq, while longer-term plans envision Iraq exporting gas to global markets via Türkiye. A dedicated pipeline from Silopi to Ceyhan is also in the planning phase to support these goals.

Türkiye is also preparing to double its electricity exports to Iraq and establish an additional transmission line. This comes amid growing uncertainty over Iraq’s energy imports, especially after the United States ended sanctions waivers that had allowed Iraq to purchase electricity from Iran. With Iranian gas still supplying a significant share of Iraq’s power generation, the search for alternative partners has become increasingly urgent.

Despite these developments, longstanding tensions over the Iraq–Türkiye pipeline, which has remained closed for over two years, continue to pose a diplomatic challenge. Disputes were reignited recently when crude from Türkiye was discovered flowing through the line, prompting objections from Iraq’s oil ministry.

Bayraktar emphasized that the matter is considered an internal issue for Iraq and should not delay forward-looking cooperation between the two sides.

While the Development Road initiative has drawn criticism for its route planning, Bayraktar affirmed that Türkiye is working with regional actors to ensure broader inclusion. Regional integration, he said, would help lower costs and streamline logistics.