Aramco Targets Hormuz Bypass with East-West Pipeline Expansion
The company is also studying overseas storage and other export routes as tanker attacks have driven freight rates more than 15 times higher, Nasser said.
- On Tuesday, Aramco CEO Amin Nasser announced the company is expanding the East-West Pipeline to circumvent the Strait of Hormuz, addressing global energy disruptions where the chokepoint previously carried 20% of world oil supplies.
- Saudi Energy Minister Prince Abdulaziz bin Salman previously outlined plans to boost pipeline export capacity to 10 million barrels per day, while the East-West network—attacked repeatedly during the US-Iran war—currently carries up to 7 million barrels daily.
- More than 130 tanker attacks have driven freight rates up more than 15 times from a year ago, Nasser reported, fueling global inflation through "higher transportation costs, fertilizer shortages, and impacts on food and consumer goods."
- Despite these challenges, Aramco reported a more than one-third surge in third-quarter profit on Tuesday; the company remains ready to ramp up production as Nasser emphasized demand fundamentals stay strong.
- Aramco is exploring additional export routes and overseas storage capacity, including potential expansions to Red Sea hubs, though Nasser stated final details await investment decisions to secure long-term energy security.
19 Articles
19 Articles
Why Aramco Is Expanding Its Hormuz-Bypass Pipeline
Saudi state oil company Aramco is working to expand a crude pipeline that avoids the Strait of Hormuz due to a major energy supply crisis, according to CEO Amin Nasser. This strategic area used to facilitate 20% of the world’s oil but is now facing blockades, prompting changes in global energy flows and investments. Saudi […]
The Saudi state oil giant Aramco is working to expand a pipeline of oil that bypasses the Ormuz Strait, in the context in which the world continues to face the greatest energy supply shock in history, said Tuesday Amin Nasser, the company's director general, quoted by Reuters. The de facto blockade of ...
Aramco expanding East-West Pipeline that avoids Hormuz
Saudi state oil giant Aramco is working to expand a crude pipeline that circumvents the Strait of Hormuz as the world continues to experience the biggest energy supply shock in history, CEO Amin Nasser said on Tuesday.The effective blockade of the chokepoint that links the Gulf to world markets, previously a conduit for 20% of global oil supplies, has redrawn global energy flows and infrastructure investment priorities among the region's oil pr…
(Cairo=Yonhap News) Correspondent Kim Sang-hoon = As the world experiences an unprecedented energy supply shock due to the Middle East war, Saudi Arabia's state-owned oil company...
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