Saudi Arabia Considers Expanding Oil Export Routes to Red Sea to Reduce Reliance on Hormuz

▲ The first oil tanker to pass through the 'Red Sea bypass' last May

Saudi Arabia is considering plans to expand alternative oil transport routes that would allow crude oil to be shipped to the western Red Sea coast without passing through the Strait of Hormuz, Reuters reported on July 7 (local time).

According to sources familiar with the matter, Saudi Arabia is discussing a plan to increase the capacity of the East-West Pipeline, which transports crude oil from eastern oil fields to the western Red Sea port of Yanbu, by up to 2 million barrels per day.

Currently, the pipeline can transport a maximum of 7 million barrels of crude oil per day. If the expansion proceeds as planned, the total transport capacity will increase to a maximum of 9 million barrels per day.

In this regard, sources stated that Saudi Arabia is in the early stages of preliminary discussions with some neighboring countries, including Kuwait and Qatar.

It has not yet been confirmed whether this capacity expansion will involve the construction of a new pipeline or the upgrading of existing infrastructure.

However, experts predict that if additional capacity is secured, it would allow not only Saudi Arabia but also neighboring countries to transport more crude oil without passing through the Strait of Hormuz.

This is a response to the blockage of oil transport routes caused by Iran's closure of the Strait of Hormuz following the start of the war between the United States, Israel, and Iran.

At that time, Iran's blockade of the strait forced oil-producing countries in the Gulf region to halt production of up to 12 million barrels of crude oil per day.

Although passage through the Strait of Hormuz has partially resumed following the recent agreement on a memorandum of understanding (MOU) to end the war between the United States and Iran, cargo volume has yet to recover to pre-war levels from February.

An official from Hardcastle Advisory, a British political consultancy, analyzed, "The discussions on building a new pipeline network involving Saudi Arabia, Kuwait, and Qatar reflect the current strategic reality," adding, "This war has served as an opportunity to imprint upon regional countries how dangerous it is to rely solely on the Strait of Hormuz."

However, sources noted that expanding pipeline capacity is a long-term project that will require billions of dollars in investment over several years.

Other Gulf countries have also begun responding to the risks associated with the Strait of Hormuz.

The United Arab Emirates (UAE) already has an alternative pipeline that can transport crude oil to the port of Fujairah without passing through the Strait of Hormuz, and it is reported that the country has begun construction on a pipeline to double its oil transport capacity there, with about half of the project already completed.

(Photo: Yonhap News)

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