Saudi Arabia is studying an increase in the capacity of its East-West pipeline, also known as Petroline, in order to export more oil through the Red Sea without passing through the Strait of Hormuz, Al Arabiya reported, citing Reuters, on Tuesday, 7 July.
The pipeline links the kingdom’s eastern oil fields to the port of Yanbu, on Saudi Arabia’s west coast. It can currently transport around 7 million barrels per day, including 5 million for export and 2 million for Red Sea refineries.
The project under consideration would add up to 2 million barrels per day of extra capacity. According to Reuters, this could involve either a new pipeline or upgrades to existing infrastructure.
Petroline was built in the 1980s to reduce Saudi dependence on the Strait of Hormuz, through which a significant share of Gulf oil passes. Recent disruptions in the strait, caused by the conflict between Iran and the US-Israeli coalition, have renewed the importance of this overland route to Yanbu.
Riyadh has also opened preliminary talks with Kuwait, Bahrain and Qatar, whose oil exports are more dependent on Hormuz. Kuwait Petroleum Corporation CEO Sheikh Nawaf al-Sabah has confirmed discussions on the possibility of routing Kuwaiti barrels through the Saudi network.
The project would, however, take several years and cost several billion dollars. It would also raise commercial questions, including access terms for the Saudi network and the pricing of crude exported from Yanbu.