Saudi Arabia plans to increase its onshore oil transportation capacity to 10 million barrels per day, establishing an alternative energy transport backup route.
53 minutes ago
Saudi Energy Minister Abdulaziz bin Salman recently stated that Saudi Arabia plans to increase its overland oil transport capacity bypassing the Strait of Hormuz to 10 million barrels per day (bpd) over the next two to three years, to reduce reliance on the Persian Gulf shipping lane. The kingdom’s East-West Oil Pipeline, which links its eastern oil fields to Yanbu Port on the Red Sea, has a designed capacity of 7 million bpd. As of early October, the pipeline’s actual daily throughput rose to 5.8 million bpd, with around 4.5 million bpd used for exports and the rest supplied to western refineries. Saudi Arabia is upgrading pumping stations along the pipeline to further boost capacity. Additionally, the kingdom plans to temporarily convert existing natural gas pipelines for crude oil transport. After adjustments, these pipelines will support an oil transport capacity of roughly 1.2 million bpd; with future investments in pumping stations and compressors, their potential capacity could reach 3 million bpd. Saudi Arabia is also evaluating a dual-use oil and gas pipeline network scheme, enabling flexible switching of transport purposes based on geopolitical risks and seasonal demand. This initiative aims to address shipping disruptions through the Strait of Hormuz and security risks on the Red Sea route, building a more resilient crude oil export system. However, the 10-million-bpd overland transport capacity remains in the planning and construction phase, and its final realization depends on pipeline upgrades and supporting infrastructure investments.
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