Bypassing the Strait of Hormuz, Gulf countries plan to invest heavily in pipeline export projects

robot
Abstract generation in progress

Deep Tide TechFlow message, April 02, according to a report by the British Financial Times: because Iran’s potential long-term control of the Strait of Hormuz poses a threat, Gulf countries are reexamining the costly pipeline plans intended to bypass this crucial shipping chokepoint and ensure oil and gas exports. Government officials and industry executives said that although the pipeline project is expensive, politically complex, and takes years, it may be the only way to reduce Gulf countries’ reliance on the strait.

The ongoing conflict further highlights the strategic value 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 could be closed due to the Iran-Iraq “tanker war.” Today, it has become a critical lifeline, delivering 7 million barrels of crude oil per day to Red Sea ports in Yanbu, fully bypassing the Strait of Hormuz. Saudi Arabia is currently considering how to export more crude oil via pipelines; specific options include expanding the capacity of the “east-west pipeline” or opening new routes. (Jin 10)

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin