Energy Giants Seek Oil Pipelines to Bypass Shipping Chokepoints

Global energy companies and regional producers are seeking alternative oil export routes to bypass the Strait of Hormuz and the Bab el-Mandeb Strait. Shipping disruptions caused by the Iran war have reduced energy exports, contributing to increased global inflation and higher prices.

TotalEnergies plans to invest in a pipeline from Iraq to Syria and expand capacity for a system leading to the UAE port of Fujairah. Chevron has signed an agreement with the Iraqi government to study pipelines connecting to Mediterranean ports in Turkey and Syria. Meanwhile, BP is redeveloping the Kirkuk oilfield alongside ConocoPhillips and TPAO to open new northern routes, though BP leadership expressed uncertainty regarding the use of shareholder funds for such projects.

Regional efforts include Kuwait Petroleum Corporation's discussions with Saudi Arabia and the United Arab Emirates regarding new pipelines. Kuwaiti leadership argues that oil importers must share the financial burden of these investments, stating that responsibility cannot fall solely on producers.