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.
-
OER Magazines2 months ago
OER Magazine: December 2024 Edition – The Most Trusted Brands in Oman
-
Energy2 months ago
Oman and Belgium Strengthen Green Hydrogen Partnership with New Landmark Agreement
-
Technology2 months ago
EXCLUSIVE: Technological Singularity – Will It Become Humanity’s Greatest Leap or Its Most Perilous Step?
-
Energy2 months ago
OUTLOOK: Emerging Markets and Renewables – The Twin Engines of Energy Growth for 2025
-
Economy4 weeks ago
Here’s Everything You Need to Know About Oman’s State General Budget for 2025
-
Oman2 months ago
Oman Braces for Launch of First Experimental Rocket Duqm-1 on 4 December 2024
-
Oman2 months ago
Transport Ministry Issues New Regulation for Security of Ships, Ports
-
News2 months ago
Nvidia Reveals AI Model for Sound Production
You must be logged in to post a comment Login