Saudi Arabia Plans Pipeline Expansion to Bypass Strait of Hormuz

The Government of Saudi Arabia is conducting preliminary talks with neighboring Gulf countries to expand its East-West crude oil pipeline capacity by up to 2 million barrels per day. The project aims to secure a reliable route to the Red Sea port of Yanbu, bypassing the Strait of Hormuz, which became a critical vulnerability after the start of the Iran war in February. That conflict led to a blockade of the strait that forced Gulf producers to shut in as much as 12 million barrels per day before a preliminary U.S.-Iran agreement partially resumed exports last month.

The pipeline currently transports 7 million barrels per day, with 5 million intended for export and 2 million for domestic refineries. The proposed expansion, which would cost billions of dollars and take several years to complete, may include upgrading existing infrastructure or building a second, smaller pipe for refined products. Kuwait, Bahrain, and Qatar currently lack viable export alternatives to the Strait of Hormuz and are seeking access to the system.

Sheikh Nawaf al-Sabah of the Kuwait Petroleum Corporation confirmed discussions with Saudi Arabia and the United Arab Emirates to accommodate Kuwaiti barrels. Simultaneously, the United Arab Emirates is developing its own West-East pipeline to double its crude capacity to Fujairah, with operations expected to begin next year.