Oil & Gas
Aramco to Finish Pipeline Expansion, Reducing Reliance on Hormuz

(Bloomberg) — Saudi Aramco expects to complete the expansion of an oil pipeline that runs east-west across the country by September, according to a person familiar with the matter, increasing the amount the kingdom can ship from the Red Sea and avoiding the increasingly tense Strait of Hormuz.
Read: Is There Really a Global Shortage of Crude Oil?
The link currently operates well below capacity, but the long-planned expansion will give Saudi Arabia the option to ship more oil from the Red Sea rather than the Persian Gulf, bypassing Hormuz.
About a fifth of the world’s oil production passes through the narrow seaway, but its vulnerability has been brought into focus in recent months as tensions between and the U.S. and Iran escalated.
The state oil company will finish the project by September, increasing the line’s capacity to carry crude oil from 5 million to 7 million barrels a day, according to a person familiar with the situation, who asked not to be identified because the plan isn’t public yet.
Read: Saudi Aramco Is the Most Profitable Company on Earth by Far
Aramco officials didn’t immediately comment. Aramco exported 6.84 million barrels a day in June, the vast bulk of it via Hormuz, according to Bloomberg tanker tracking data.
Aramco operates the pipeline below capacity because the largest Saudi oil fields are closer to the Persian Gulf and the majority of exports head east to customers in Asia rather than west to Europe and the U.S.
The plan to complete the expansion by September was first reported by Energy Intelligence.
-
Banking & Finance3 weeks ago
Oman Arab Bank Announces Increase of Authorised Capital to RO500mn and Paid‑In Capital Boost of RO50mn
-
Renewables2 months ago
Jindal Renewables and OQ Alternative Energy Sign Joint Development Agreement to Advance Integrated Renewable Power Projects in Oman
-
Bahrain3 weeks ago
SPIEF 2025 focused on global and regional economic processes, market transformation, new tech, investment climate, financial policy and people
-
OER Magazines2 months ago
OER, May 2025
-
Alamaliktistaad Magazines2 months ago
Al-Iktisaad, May 25
-
Leaders Speak2 months ago
OERLive SPOTLIGHT: Oman Sustainability Week 2025 and Oman Petroleum & Energy Show
-
Banking & Finance1 month ago
Central Bank of Oman Issues Regulatory Framework for Digital Banks
-
Banking & Finance2 months ago
United Finance Company: Strategically Serving Oman’s Auto Market with Faster, Customer-First Solutions
You must be logged in to post a comment Login