Saudi Aramco studying new crude export routes, overseas storage expansion
The move comes as global energy markets face disruptions stemming from ongoing conflicts in the region
Saudi Arabia is planning to expand its oil export routes to reduce its dependence on the Strait of Hormuz, according to Energy Minister Prince Abdulaziz bin Salman. The country is converting a gas pipeline to carry crude oil, which could transport up to 1 million barrels per day within eight weeks, and potentially 3 million barrels with additional investment.
The government, not Aramco, is currently financing this expansion. The move is driven by the urgency of global oil supply strains due to conflicts in the Middle East and Ukraine, with Goldman Sachs forecasting higher oil prices. However, Iran is unlikely to remain passive as new export routes develop, according to experts at the Center for Strategic and International Studies.
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