Saudi Arabia has announced extensive plans to increase the capacity of its East-West oil pipeline to 10 million barrels per day (bpd) over the next two to three years. This pipeline allows Saudi Arabia to bypass the Strait of Hormuz and currently has a capacity of 5.8 million barrels per day.
Details of the East-West Oil Pipeline
The 740-mile East-West pipeline, also known as the "Petroline," currently has a maximum capacity of 7 million barrels per day. Saudi Arabia's Minister of Energy, Prince Abdulaziz bin Salman, announced at the WPC energy congress in Riyadh that the pipeline has resumed operations after a two-week hiatus due to drone attacks in September. Given the ongoing tensions and existing issues, Saudi Arabia has decided to add another 3 million barrels per day to the pipeline's capacity.
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Importance of the Pipeline in Oil Exports
With this pipeline, Saudi Arabia has been able to divert most of its crude oil exports away from the currently congested Strait of Hormuz and send larger quantities of oil through the Yanbu port in the Red Sea. The route bypassing Hormuz is not without risks, as Yemen's Houthis announced last July their intention to halt Saudi shipments through the Bab el-Mandeb Strait, which is the shortest route for Saudi oil to reach Asian markets. However, Prince Abdulaziz emphasized the Kingdom's energy resilience at this congress, stating that resilience "must also be measured by the ability to maintain, repair, reroute, replace, and rebuild. Above all, it must be measured by the ability to continue delivery under pressure."
The CEO of Aramco, Amin Nasser, said at the same event: "In coordination with the Ministry of Energy, we are exploring additional crude oil export routes and working on expanding storage abroad." Nasser added that Aramco is also focused on reducing risks and limiting damages, utilizing modern technologies for facility inspections and accelerating restoration efforts.
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