Key facts
- Saudi Arabia plans to increase its East-West oil pipeline capacity to 10 million bpd within two to three years.
- The pipeline currently transports approximately 5.8 million bpd.
- The existing maximum capacity of the East-West pipeline is 7 million bpd.
- The pipeline became a critical export route after the Strait of Hormuz was bypassed.
- Saudi Aramco is exploring additional crude export routes and overseas storage expansion.
Saudi Arabia is planning a significant expansion of its East-West oil pipeline, aiming to boost its capacity to 10 million barrels per day within two to three years. This move is designed to enhance the Kingdom's ability to bypass the Strait of Hormuz, a critical chokepoint for global oil trade.
Energy Minister Prince Abdulaziz bin Salman announced the expansion plans at the WPC Energy Congress in Riyadh, stating that the pipeline, also known as Petroline, is essential for maintaining energy resilience. The 740-mile-long pipeline currently has a maximum capacity of 7 million bpd and is carrying approximately 5.8 million bpd. The expansion will add 3 million bpd to its capacity.
The East-West pipeline has become a vital artery for Saudi oil exports, allowing the diversion of crude away from the Strait of Hormuz and through the Yanbu port on the Red Sea. This route, however, is not without its own risks, as Iran-aligned Houthis have previously threatened shipments through the Bab el-Mandeb Strait.
Saudi Aramco's CEO, Amin Nasser, indicated that the company is aligned with the Ministry of Energy's strategy and is exploring additional crude export routes, as well as expanding overseas storage. He also highlighted the company's focus on mitigating risks and using advanced technologies for facility inspection and restoration.