Saudi Arabia Plans Massive Expansion of Oil Pipeline to Bypass Hormuz

Saudi Arabia is set to increase the capacity of its East-West onshore oil pipeline, which helps the country bypass the Strait of Hormuz, to 10 million barrels per day (bpd) within the next two to three years, according to Saudi Energy Minister Prince Abdulaziz bin Salman. The minister made this announcement at the WPC Energy Congress in Riyadh.

Currently, the pipeline transports around 5.8 million bpd, following a two-week suspension after drone attacks in September. The 740-mile-long pipeline, also known as Petroline, has a maximum capacity of 7 million bpd. Despite ongoing conflicts and disruptions, Saudi Arabia aims to add an additional 3 million bpd to the pipeline, which has become a vital lifeline for Saudi oil exports since the closure of the Strait of Hormuz.

By using the pipeline, Saudi Arabia has successfully diverted most of its crude oil exports away from the congested Strait of Hormuz and is increasingly shipping larger volumes via the Yanbu port on the Red Sea. However, the route is not without risks, as the Iran-aligned Houthis in Yemen have threatened to block Saudi shipments through the Bab el-Mandeb Strait, the shortest route for Saudi oil supply from Yanbu to reach Asian markets.

Despite these challenges, Prince Abdulaziz emphasized Saudi Arabia's energy resilience at the WPC Energy Congress, stating that "energy resilience must also be measured by the ability to maintain, repair, reroute, substitute and recover. Above all, it must be measured by the ability to continue delivering under pressure." Saudi Aramco's chief executive officer, Amin Nasser, echoed this sentiment, saying that the company is exploring additional crude export routes and expanding overseas storage in line with the Ministry of Energy's objectives.

Nasser also highlighted that Aramco is focused on mitigating risks and minimizing damage by utilizing frontier technologies to inspect facilities and expedite restoration.