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Gulf countries plan to invest heavily in pipeline export projects to bypass the Strait of Hormuz
ChainCatcher reports that, according to the British Financial Times, because Iran’s potential long-term control of the Strait of Hormuz poses a threat, Gulf states are reexamining costly pipeline plans to bypass this strategic chokepoint and ensure oil and gas exports. Government officials and industry executives stated that although the pipeline project is expensive, politically complex, and takes several years, it may be the only way to reduce Gulf states’ dependence on the strait.
The ongoing conflict further emphasizes the strategic importance of Saudi Arabia’s 1,200-kilometer east-west pipeline. Built in the 1980s, the pipeline was originally designed to address concerns that the strait would be closed due to the Iran-Iraq “tanker wars.” Today, it has become a vital lifeline, transporting 7 million barrels of crude oil daily to the Red Sea port of Yanbu, completely bypassing the Strait of Hormuz.
Saudi Arabia is currently exploring ways to export more crude oil via pipelines. Specific options include expanding the capacity of the east-west pipeline or developing new routes.