Saudi Arabia weighs expanding Red Sea crude pipeline to reduce reliance on Strait of Hormuz

Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the Red Sea, a move that would allow the kingdom and neighboring producers to ship more barrels without transiting the Strait of Hormuz, according to five sources cited by Odaily Planet Daily. The east-west pipeline, built in the early 1980s, has taken on greater strategic importance since war erupted in Iran in February and shipping through the Strait of Hormuz was disrupted. The line can carry up to 7 million barrels per day of crude to Yanbu on the Red Sea. In May, Aramco's CEO said roughly 2 million barrels per day supply refineries on the western coast, while about 5 million barrels per day are exported. Sources said Saudi Arabia is holding early-stage talks with some neighbors on adding around 2 million barrels per day of capacity. It is not yet clear whether Aramco would expand by upgrading existing infrastructure or by building a new pipeline. One source said the plan also includes a smaller pipeline for refined products. Two sources put the potential expansion range at 1–2 million barrels per day, with refined products also under consideration. Another source said the project would take several years, cost billions of dollars, and require adjustments to Saudi Arabia's crude oil pricing mechanism. (Jin10)