en.Wedoany.com Reported - Saudi Arabia is considering expanding its oil pipeline to the west coast of the Red Sea to reduce reliance on the Strait of Hormuz, allowing more exported crude to bypass this vital shipping route.
Saudi Arabia's existing crude oil pipeline has a daily capacity of 7 million barrels, of which about 2 million barrels supply refineries on the west coast, with the remaining 5 million barrels used for export.
Saudi Arabia is in preliminary consultations with some neighboring countries on potential plans to expand the pipeline, aiming to increase capacity by up to 2 million barrels per day. The specific expansion plan has not yet been finalized, but it will include a smaller second pipeline for transporting refined products.
Middle Eastern countries involved in the discussions may include Kuwait, Bahrain, and Qatar, all of which lack oil transportation routes bypassing the Strait of Hormuz. Iraq's oil pipeline to Turkey is currently operating well below capacity due to long-standing disputes and multiple shutdowns.
Kuwait Petroleum Corporation CEO Sheikh Nawaf al-Sabah said last month that consultations are underway with Saudi Arabia and the United Arab Emirates to expand the existing pipeline system to transport Kuwaiti crude oil.
Sources indicate that the expansion project will take several years and cost billions of dollars, and will require adjustments to Saudi Arabia's crude oil pricing mechanism.
