Saudi state oil company Aramco is working to expand a crude pipeline that avoids the Strait of Hormuz due to a major energy supply crisis, according to CEO Amin Nasser. This strategic area used to facilitate 20% of the world’s oil but is now facing blockades, prompting changes in global energy flows and investments.
Saudi Arabia aims to increase its crude export capacity by repurposing a domestic gas pipeline and enhancing its East-West pipeline to potentially ship up to 10 million barrels per day. Nasser shared that the expansion work has already begun. Currently, Aramco has three export routes: through the Gulf, the Bab el-Mandeb Strait, and the Suez Canal.
Nasser noted that the East-West pipeline can carry up to 7 million barrels daily and has been vital, especially amidst ongoing attacks linked to the US-Iran conflict. He also mentioned that Aramco is studying additional storage options abroad. The energy crisis, Nasser said, impacts inflation and costs in agriculture and consumer goods globally. He emphasized the necessity of planning for future energy needs beyond immediate market conditions, with Aramco poised to boost production as needed.
With information from Reuters
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