Saudi Arabia Considers Expanding Red Sea Routes to Reduce Hormuz Dependence

Saudi Arabia is exploring options to expand alternative oil transport routes, particularly along its western Red Sea coast, to reduce its reliance on the Strait of Hormuz. This strategic consideration comes in response to the ongoing geopolitical tensions and the potential for disruptions in the vital waterway.

The kingdom is reportedly discussing plans to increase the capacity of its East-West pipeline, which currently moves crude oil from its eastern oil fields to the port of Yanbu on the Red Sea. The pipeline has a capacity of 7 million barrels per day, and the proposed expansion could increase this to 9 million barrels per day. Such an increase would allow Saudi Arabia and neighboring Gulf states to transport larger volumes of oil without transiting the Strait of Hormuz.

These efforts are a direct response to the risks highlighted by past incidents, including Iran's threats to block the Strait of Hormuz during periods of heightened conflict. Such blockades have previously forced Gulf producers to halt significant portions of their daily output. While maritime traffic has partially resumed following recent agreements, volumes have not yet returned to pre-conflict levels.

Experts suggest that discussions around new pipeline networks involving Saudi Arabia, Kuwait, and Qatar reflect the current strategic realities. However, expanding pipeline capacity is a long-term endeavor requiring substantial investment over several years. Other Gulf nations, like the UAE, have already established alternative routes, with the UAE currently doubling the capacity of a pipeline that bypasses the Strait of Hormuz and reaches the Fujairah port.