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Saudi Arabia Sets Sights on 10 Million Barrels a Day Through Pipelines, Away From Gulf, Red Sea Routes

Saudi Arabia is looking to raise the amount of crude oil it can export by pipeline to as much as 10 million barrels per day, as the kingdom works to protect supplies from disruption to its sea routes.

 

Energy Minister Prince Abdulaziz bin Salman announced the plan on Monday at the World Petroleum Congress in Riyadh. He said the expansion would come from repurposing a domestic gas pipeline and investing in the existing East West pipeline network.

 

In the short term, the kingdom could add up to 1.2 million barrels per day of export capacity within seven to eight weeks by temporarily converting a gas pipeline to carry crude. With further investment, a total of up to 3 million barrels per day could be added. The minister said he has told state oil giant Saudi Aramco it can use the converted line for oil until May, after which it must be cleaned and returned to gas service before the summer season.

 

For the larger goal, he said upgrades to pumping stations on the East West pipeline and other infrastructure projects could lift capacity to around 10 million barrels per day over the next two to three years. The extra volumes would allow the kingdom to divert shipments away from its main maritime routes in the Gulf and the Red Sea.

 

The announcement comes as the US and Israeli war on Iran continues to disrupt Gulf shipping and energy markets. Prince Abdulaziz said the continued disruptions are piling pressure on crude and refined fuel markets, especially diesel, and that years of planning had helped Saudi Arabia cope with the crisis. The congress, which Saudi Arabia is hosting for the first time in its history, runs until October 15.

Mubarak Bello

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