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Aramco's New Pipeline: Bypassing Hormuz
24 Oct
Summary
- Aramco aims to boost oil pipeline capacity to 10 million barrels daily.
- The expansion aims to reduce reliance on the Strait of Hormuz.
- The pipeline has faced repeated drone and missile attacks.
Saudi Aramco is undertaking a major project to expand the capacity of its East-West Crude Oil Pipeline, known as the Petroline. This initiative aims to establish a more secure alternative route for oil exports, reducing reliance on the Strait of Hormuz. The pipeline's capacity is slated to increase from its current 7 million barrels a day to 10 million barrels a day.
The expansion, expected to take two to three years, addresses concerns about the Strait of Hormuz, which has experienced disruptions. While the Petroline has been ramped up to handle increased volumes, it has also been a target for drone and missile attacks, including incidents in May 2019, April 2026, and September 2026. These attacks have temporarily halted or reduced flows, underscoring the vulnerability of the infrastructure.
Experts express caution regarding the potential impact on global fuel prices, suggesting that even a full expansion might only marginally affect prices. Factors such as the pipeline's susceptibility to attacks and the availability of refinery capacity remain critical considerations for the overall effectiveness of this strategic move.
