Damascus Chamber of Industry says cheaper Iraqi oil and gas could anchor a long term economic partnership with Syria

Mohammad Marwan Orfali, head of the Gas and Energy Committee at the Damascus Chamber of Industry, told Shafaq News on Tuesday 4 August 2026 that cheaper Iraqi oil and gas could anchor a long term economic partnership between Iraq and Syria and ease pressure on Syrian industry. He said high energy costs are the most significant challenge facing Syrian manufacturers, and that Iraq's geographic proximity would substantially cut transport costs and allow fuel to reach Syria at lower prices.

Orfali said increasing Iraqi oil and gas supplies would directly benefit Syria's electricity, transport and industrial sectors, and that cheaper energy would enable factories to expand output, attract investment and create jobs. He added that the partnership should extend beyond fuel supplies to include rehabilitating oil infrastructure, developing joint pipeline projects, establishing electricity interconnection, and supplying Syria with oil, gas and electricity at preferential prices.

Baghdad and Damascus signed a memorandum of understanding under US sponsorship on 17 July 2026 to reactivate the Kirkuk to Baniyas oil pipeline, aiming to resume Iraqi crude exports to Mediterranean ports through Syrian territory and diversify Iraq's export routes after the closure of the Strait of Hormuz. Deputy Minister of Economy and Industry Mohammad Yassin Houri said earlier that Syria is planning to establish joint industrial and economic zones with neighbouring countries, including Iraq.