For the past two decades, energy interconnectivity has been one of the pillars of Iran�s regional relations. From the early days of the so-called oil swap deals between Iran and Central Asia in the 1990s through the expansion of a regionally structured grid of gas pipelines, and to a growing connectivity of electricity grids, Iran has gradually become the region�s main energy hub.

In this process, Iran is not just focusing on expanding its own export potential, but on the notion of regional energy interdependency. In fact, the latest initiative � a planned crude pipeline from Iraqi Kurdistan to Iran � highlights the country�s indispensable role as an energy hub in the entire region.

Indeed, Iran and the Kurdistan Regional Government (KRG) have reportedly agreed on the technical details of a plan to build a pipeline with a capacity of up to 250,000 barrels per day (bpd) of crude oil to Iran. Reports highlight that the pipeline would connect Koysinjaq in the KRG, crossing the border at Parvez Khan and then go to Kermanshah in western Iran, where the crude would be inserted into the Iranian pipeline system and potentially used in the country�s northern refineries.

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This article was written by Bijan Khajehpour for Al-Monitor on June 29, 2016. Bijan Khajehpour�is a managing partner at Atieh International, the Vienna-based international arm of the Atieh Group of Companies, a group of strategic consulting firms based in Tehran, Iran.