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Saudi Arabia Boosts Oil Exports Via Red Sea Pipeline, Bypassing Hormuz
🇦🇹 Austria /Energy & Infrastructure

Saudi Arabia Boosts Oil Exports Via Red Sea Pipeline, Bypassing Hormuz

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Saudi Arabia is increasing oil exports via the East-West pipeline to the Red Sea, bypassing the Strait of Hormuz amid rising tensions.
  • The pipeline's capacity is being fully utilized to compensate for potential disruptions, ensuring global oil supply.
  • New land-based energy and trade corridors connecting the Gulf to the Mediterranean are being supported, offering economic opportunities for countries like Jordan and Syria.

Amid escalating tensions surrounding the Strait of Hormuz, Saudi Arabia is leveraging its extensive East-West pipeline to bolster global oil supply. The 1,201-kilometer pipeline, originally built to ensure exports during the Iran-Iraq War, is now pumping an additional five million barrels per day to the Red Sea port of Yanbu.

The disruption of the world's most important maritime chokepoint is leading to a wave of support for new land-based trade and energy corridors connecting the Gulf to the Mediterranean.

— Allison MinorDirector for Middle East Cooperation at the Atlantic Council, commenting on the potential for new trade routes.

This strategic move aims to prevent drastic cuts in Saudi oil production, a situation already impacting other nations like Iraq, which has seen its daily output significantly reduced. The full utilization of the pipeline underscores the critical importance of this alternative route in mitigating the economic threat posed by potential disruptions in the Persian Gulf.

New cross-border corridors have the potential to strengthen cooperation in a region suffering from low economic integration and high political fragmentation.

— Allison MinorFurther elaborating on the benefits of new trade corridors.

Beyond immediate supply concerns, the current crisis is fostering support for new land-based trade and energy corridors. These routes, envisioned to connect the Gulf to the Mediterranean via pipelines and rail networks, could significantly enhance regional cooperation. Experts suggest these corridors offer much-needed economic opportunities for countries such as Jordan and Syria, regions often hampered by limited economic integration and political fragmentation.

Urgent economic opportunities for countries like Jordan and Syria.

— Allison MinorDescribing the potential economic impact of new corridors on regional countries.

Initiatives are already underway to expand existing infrastructure. The United Arab Emirates plans to double the capacity of its Abu Dhabi Crude Oil Pipeline, which transports oil to Fujairah on the Gulf of Oman, east of Hormuz. This expansion aims to solidify the UAE's position as a reliable global energy supplier, further circumventing the Strait of Hormuz.

To be a reliable global energy supplier.

— Sheikh Khaled bin Mohamed bin ZayedStating the goal behind doubling the UAE's pipeline capacity.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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