Saudi Arabia Mulls Expanding Crude Pipeline by 2M bpd

Saudi Arabia is in preliminary discussions to significantly expand its cross-country crude oil pipeline to the Red Sea, a strategic move aimed at reducing reliance on the vulnerable Strait of Hormuz. The proposed expansion of the East-West Pipeline could add up to two million barrels per day of capacity, enabling the kingdom and potentially its neighbors to route more exports away from the contested waterway.

The existing pipeline, built in the early 1980s, currently transports up to seven million barrels per day to the port of Yanbu on the Red Sea coast. According to officials, approximately two million barrels per day feed domestic refineries, while five million are for international export. The kingdom has initiated talks with neighboring Gulf states regarding the potential capacity increase, though it remains unclear whether the project would involve upgrading current infrastructure or constructing new pipelines. One proposal under consideration includes adding a secondary, smaller pipeline for refined oil products.

This strategic push follows a war between Iran and a U.S.-aligned coalition that began in February. The conflict led to an Iranian blockade of the Strait of...