Insider: Saudi Arabia plans to expand oil pipelines in the Red Sea direction, bypassing the Strait of Hormuz to increase capacity by 2 million barrels per day

According to Odaily, five informed sources revealed that Saudi Arabia is considering expanding the crude oil pipeline capacity 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. This east-west pipeline, built in the early 1980s, 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. In May, the CEO of Saudi Aramco stated that approximately 2 million barrels per day supply the west coast refineries, while about 5 million barrels per day are for export. Sources said Saudi Arabia is conducting preliminary consultations with some neighboring countries on expanding the pipeline, planning to add around 2 million barrels per day of pipeline capacity. It is currently unclear whether Aramco's planned expansion involves upgrading existing infrastructure or building a new pipeline. One source said the expansion plan also includes a smaller product pipeline. Two sources said the expansion scale could range from 1 million to 2 million barrels per day, with refined products also being considered. Another source said the project would take several years and cost billions of dollars, and would require adjustments to Saudi crude oil pricing mechanisms. (Jin Shi)