‎Saudi Arabia explores expansion of oil pipeline to Red Sea: Report

‎Saudi Arabia explores expansion of oil pipeline to Red Sea: Report ‎Saudi Arabia explores expansion of oil pipeline to Red Sea: Report

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Oil tanks

Saudi Arabia is studying an expansion of the crude oil pipeline to the Kingdom’s western coast on the Red Sea, enabling it to transport larger volumes of crude without passing through the Strait of Hormuz, Reuters reported, citing informed sources.

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According to the sources, Saudi Arabia is holding preliminary talks with neighboring countries on a potential expansion of the pipeline’s capacity by up to 2 million barrels per day (bpd).

It remains unclear whether the planned capacity increase by Saudi Arabian Oil Co. (Saudi Aramco) would involve upgrading the existing infrastructure or constructing a new pipeline, the sources added.

The expansion would also include a second, smaller pipeline to transport refined petroleum products, one of the sources said.

According to data available with Argaam, Saudi Aramco CEO said in May that the East-West Pipeline, which operated at its full capacity of 7 million bpd for eight consecutive days, proved to be a vital artery for maintaining supplies of crude oil and other petroleum products to global markets.

He added that the pipeline helped mitigate the impact of the global energy shock and supported customers affected by shipping constraints through the Strait of Hormuz.

 

Oil tanks

Saudi Arabia is studying an expansion of the crude oil pipeline to the Kingdom’s western coast on the Red Sea, enabling it to transport larger volumes of crude without passing through the Strait of Hormuz, Reuters reported, citing informed sources.

According to the sources, Saudi Arabia is holding preliminary talks with neighboring countries on a potential expansion of the pipeline’s capacity by up to 2 million barrels per day (bpd).

It remains unclear whether the planned capacity increase by Saudi Arabian Oil Co. (Saudi Aramco) would involve upgrading the existing infrastructure or constructing a new pipeline, the sources added.

The expansion would also include a second, smaller pipeline to transport refined petroleum products, one of the sources said.

According to data available with Argaam, Saudi Aramco CEO said in May that the East-West Pipeline, which operated at its full capacity of 7 million bpd for eight consecutive days, proved to be a vital artery for maintaining supplies of crude oil and other petroleum products to global markets.

He added that the pipeline helped mitigate the impact of the global energy shock and supported customers affected by shipping constraints through the Strait of Hormuz.

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