Sources: Saudi Arabia plans to expand oil pipelines toward the Red Sea, bypassing the Strait of Hormuz to add 2 million barrels per day in 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 Saudi Arabia and its neighboring countries to transport more oil without passing through the Strait of Hormuz. This east-west pipeline, originally built in the early 1980s, has grown in strategic importance since the Iranian war broke out in February and shipping through the Strait of Hormuz was disrupted. The pipeline can carry up to 7 million barrels per day of crude oil to the Yanbu port on the Red Sea. In May, Saudi Aramco's CEO stated that about 2 million barrels per day supply the west coast refineries, and about 5 million barrels are for export. Sources said Saudi Arabia is holding preliminary discussions with some neighboring countries on expanding the pipeline, planning to add approximately 2 million barrels per day of pipeline capacity. It remains unclear whether Aramco's planned expansion involves upgrading existing infrastructure or building a new pipeline. One of the sources said the expansion plan also includes a smaller product pipeline. Two sources said the expansion scale could be between 1 million and 2 million barrels per day, with refined products also being considered. Another source said the project would take years, cost billions of dollars, and require adjustments to Saudi Arabia's crude oil pricing mechanism. (Jinshi)