Saudi Arabia Considers Expanding Red Sea Oil Pipeline by 2 Million Bpd to Reduce Hormuz Dependence

Saudi Arabia is considering a major expansion of its East-West crude oil pipeline to increase the volume of oil that can reach the Red Sea without passing through the Strait of Hormuz. According to a Reuters report published on July 7, the Kingdom is exploring an increase of up to 2 million barrels per day in pipeline capacity, although discussions remain at a preliminary stage.

The existing East-West pipeline can move up to 7 million barrels per day toward Yanbu. Around 2 million barrels per day are used for domestic refining, leaving roughly 5 million barrels per day potentially available for exports. The proposed expansion could involve upgrades to existing infrastructure or the construction of additional pipeline capacity, and refined petroleum products may also be included.

Saudi Arabia is also reportedly discussing the wider use of the route with neighbouring Gulf countries, including Kuwait, Bahrain and Qatar. If approved, the multibillion-dollar project would take several years to complete but could significantly strengthen regional energy security during disruptions around the Strait of Hormuz.

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