Sources: Saudi Arabia Plans to Expand Red Sea Oil Pipeline, Bypassing the Strait of Hormuz to Add 2 Million Barrels of Daily Capacity

Odaily Planet Daily News Five sources familiar with the matter revealed that Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the west coast of the Red Sea, enabling the kingdom and its neighbors to transport more oil without passing through the Strait of Hormuz. Built in the early 1980s, this east-west pipeline has grown in strategic importance since the outbreak of the Iran war in February and the disruption of shipping through the Strait of Hormuz. The pipeline can deliver up to 7 million barrels per day of crude oil to the Yanbu port on the Red Sea. The CEO of Saudi Aramco stated in May that approximately 2 million barrels per day supply the west coast refineries, while about 5 million barrels are for export. According to the sources, Saudi Arabia is in preliminary consultations with some neighboring countries regarding the pipeline expansion, planning to add approximately 2 million barrels of pipeline capacity per day. It is currently unclear whether Aramco's planned expansion will involve upgrading existing infrastructure or building new pipelines. One of the sources noted that the expansion plan also includes a smaller refined products pipeline. Two sources indicated that the expansion scale could range from 1 million to 2 million barrels per day, with refined products also under consideration. Another source stated that the project would take several years, cost tens of billions of dollars, and require adjustments to the pricing mechanism for Saudi crude oil. (Jin Shi)