Saudi Arabia Plans Massive Expansion of Oil Pipeline to Bypass Hormuz
Saudi Arabia Shoots Down Houthi Missiles as Regional Conflict Escalates What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Saudi Arabia plans to raise the capacity of its East-West onshore oil pipeline that helps it bypass the Strait of Hormuz to 10 million barrels per day (bpd) within two to three years, Saudi Energy Minister Prince Abdulaziz bin Salmansaidat the WPC Energy Congress in Riyadh.
The pipeline, which returned to service after a two-week suspension following drone attacks in September, currently carries about 5.8 million bpd, the ministersaidlast week.
The 740-mile-long pipeline, also known as Petroline, has a maximum capacity of 7 million bpd at present.
Despite the ongoing conflict and disruptions, Saudi Arabia plans to add 3 million bpd to the East-West pipeline, which became a lifeline for Saudi oil exports after the closure of the Strait of Hormuz.
Thanks to the pipeline, Saudi Arabia managed to divert most of its crude oil exports away from the choked Strait of Hormuz and ships increasingly larger volumes via the Yanbu port on the Red Sea.
The route to bypass Hormuz is not without risks, either.
The Iran-aligned Houthis in Yemen vowed in July to halt Saudi shipments through the Bab el-Mandeb Strait, which is the shortest route for Saudi oil supply from Yanbu to reach Asian markets.
Still, Prince Abdulaziz on Mondaytouted the energy resilienceof the Kingdom, telling the WPC Energy Congress 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,saidat the same event that “In alignment with the Ministry of Energy, we are studying additional crude export routes, and working on expanding overseas storage.” Aramco’s top executive added that the company is “also focused on mitigating risks and limiting damage, using frontier technologies to inspect facilities and accelerate restoration.” IMF Warns Middle East War Could Derail Global Economic Growth Saudi Arabia Shoots Down Houthi Missiles as Regional Conflict Escalates What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Saudi Arabia Cuts Europe Off From October Crude as Gulf Exports Surge Saudi Arabia Discovers 110 Million Tonnes of Uranium-Bearing Ore Strait of Hormuz Shipping Traffic Falls Further as Saudi Oil Flows Rise Macron Calls for Another Emergency Oil Release as Europe Loses Supply U.S.
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| Product | Price | Change |
|---|---|---|
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| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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