On April 15, 2026, the Banias oil terminal on the Syrian coast saw the loading of the first supplies of Iraqi fuel oil in anticipation of export to international markets, a move that is changing regional energy equations.

This marks a significant shift in Syria-Iraq logistical transport, as overland exports across Syrian territory resume for the first time in decades, owing to geopolitical conditions that have forced Baghdad to seek alternate and more reliable routes.

Strategic Exports Amid Regional Crises

In light of the consequences of the conflict with Iran, which hampered shipping via the Strait of Hormuz, a crucial waterway for a fifth of the world’s oil traffic, Iraq has resumed using Syrian ports.

Production from Iraq’s southern oil resources fell by 80%, to about 800,000 barrels per day, due to the disruption of regular routes and the full capacity of storage facilities. As a result, the Iraqi State Oil Marketing Company (SOMO) signed contracts to supply about 650,000 tonnes of fuel oil per month via the Syrian route.

In this sense, the tanker “Asahi Princess” started loading its 85,000 tonnes of cargo. This is a complicated logistical process that starts at the refinery in Banias and goes all the way to the marine terminal.

The Syrian Petroleum Company’s Executive Vice President, Engineer Ahmed Qubbaji, clarified that this agreement represents essential cooperation for shipping Iraqi fuel oil by sea, pointing out that the total amount intended to be loaded into the tanker is expected to be around 500,000 tonnes.

Syria-Iraq: Energy Integration & Economic Impact

Beyond exports, this channel is crucial because it directly supports the Syrian electrical industry. According to Engineer Qubbaji, there were two phases of the agreement: The first centred on meeting the requirements of nearby power plants, like the thermal power plants in Zara and Homs, while the second centred on exporting the excess through the ports.

According to Mr. Safwan Sheikh Ahmed, Director of Corporate Communications at the Syrian Petroleum Company, this development shows that Syria’s infrastructure is prepared to handle regional flows and is a sign of increased international trust in Syria’s capacity to support the stability of energy supplies.

He emphasised that the current logistics system depends on overland transportation via specialised tankers that cross the Al-Tanf border crossing. This route generates direct revenue from storage and transit services and helps to revitalise transportation-related industries and create jobs.

Rehabilitating Infrastructure & Border Crossings

Even with encouraging operational metrics, the infrastructure’s current condition still poses a structural barrier that authorities must address. In this regard, the General Authority for Border Crossings and Customs’ Director of Public Relations, Mr. Mazen Alloush, clarified that the Authority has put in place a thorough plan to guarantee the seamless passage of Iraqi convoys by streamlining customs processes and assigning safe routes.

Alloush did, however, draw attention to the fact that at the Al-Tanf border crossing, some roads and bridges require extensive renovations. He underlined that the Authority is attempting to solve these issues by implementing continuous maintenance programmes to improve staff and facility productivity.

Reviving Historical Ties

This route brings back memories of previous logistical ties, particularly the Kirkuk-Banias pipeline, which had a 300,000-barrel-per-day capacity when it was first opened in the 1950s. Syrian officials view the current phase as a legitimate test of technical readiness before advancing to higher levels that entail pipeline rehabilitation, which requires international technical and investment arrangements.

Ultimately, officials underscore that Syria’s strategic location makes it a major hub for energy transport to the Mediterranean, thereby strengthening regional economic integration and creating new opportunities for Arab businesses to participate in development and reconstruction projects, solidifying Syria’s role as a crucial logistics hub in the global energy equation.