The President of France, Emmanuel Macron, announced on Friday at a press conference that his country is beginning cooperation with Iraq and Jordan to construct a pipeline for transporting oil and gas from Iraq to the European market in order to reduce dependence on the Strait of Hormuz.
Strategic and Diplomatic Goals
Macron noted at the meeting that the energy crisis is not limited to France and has affected all countries on the European continent. He added: "We seek a peaceful solution to protect navigation in the Strait of Hormuz." The President of France also referred to the possibility of an agreement between the United States and Iran to reduce current tensions.
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These statements came after the visit of Ali Falah al-Zaydi, the Prime Minister of Iraq, to Paris and the signing of six cooperation agreements between the two sides at the Élysée Palace. In these agreements, discussions began on several energy projects that could strengthen economic cooperation between France and Iraq.
Details of the Pipeline Project
According to this agreement, TotalEnergies and the Iraqi government are exploring several new projects based on extensive investment. Patrick Pouyanné, the CEO of TotalEnergies, stated that his company is in active discussions to gain a share in a consortium planning the construction of the Basra-Baniyas pipeline. It is reported that TotalEnergies is seeking to acquire a 10% share of this consortium.
This consortium includes the American company Chevron, the Qatari-Syrian company UCC Holding, and the American investment firm TI Capital. TotalEnergies announced in August that it would join this consortium. The pipeline in question will enable the transfer of oil from the southern fields of Basra to the port of Baniyas on the Mediterranean coast of Syria and then to Europe.
Industry experts estimate the total cost of this project to be around $15 billion, and the construction process will take at least four years. Given the existing tensions in the region, this project could help reduce Europe's dependence on energy resources through the Strait of Hormuz.
Currently, the war between the United States and Israel with the Islamic Republic of Iran and the closure of the Strait of Hormuz have disrupted a significant portion of Iraq's daily exports of 3.5 million barrels. Iraq, which previously had mostly Asian oil customers, is now sending crude oil via tankers through Syria and using the pipeline to the Turkish port of Ceyhan.
These new developments in the energy sector could have significant impacts on global markets and diplomatic relations among regional countries. Given European countries' dependence on foreign energy resources, this project is seen as an important step towards ensuring energy security and reducing regional tensions.
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