Middle East — 2026-07-09

Saudi Arabia Considers Expanding East-West Pipeline by 2 Million Barrels Per Day to Bypass Hormuz

BLUFRiyadh's bid to extend Hormuz-bypass capacity to Kuwait, Bahrain, and Qatar would reshape Gulf energy security architecture but faces years of unresolved infrastructure and pricing decisions that could sharply limit realized throughput.

Saudi Arabia is considering expanding capacity of its East-West crude pipeline to the Red Sea port of Yanbu by up to 2 million barrels per day, five sources close to the matter told Reuters 123Strait of Hormuz" data-source="Egypt Oil & Gas" data-url="https://egyptoil-gas.com/news/saudi-arabia-explores-east-west-pipeline-expansion-to-bypass-strait-of-hormuz/" data-rt="secondary" data-otype="trade_press">4. The pipeline currently moves up to 7 million bpd, with about 2 million bpd feeding west-coast refineries and 5 million bpd for export, Aramco CEO Amin Nasser said in May 13. Riyadh is holding preliminary talks with Kuwait, Bahrain and Qatar, which lack routes bypassing the Strait of Hormuz; Kuwait Petroleum Corporation CEO Sheikh Nawaf Al-Sabah said last month Kuwait is discussing pipeline capacity for its crude with Saudi Arabia and the UAE 134. Sources said the 1 million to 2 million bpd expansion would take years and cost billions of dollars, with one source noting plans could include a smaller secondary line for refined products. Whether Aramco would upgrade existing infrastructure or build a new pipeline is unclear 134.

Analysis
Riyadh's reported plan to expand East-West pipeline capacity by up to 2 million bpd, and preliminary talks extending Hormuz-bypass access to Kuwait, Bahrain, and Qatar, would meaningfully shrink Gulf crude exposed to a strait closure, though final scope remains uncertain pending decisions on new construction versus upgrades and on renegotiating Saudi crude pricing. The story rests solely on Reuters' five unnamed sources, with other outlets reproducing or summarizing the wire rather than independently corroborating it. Parallel construction of the UAE's West-East pipeline to Fujairah points to a broader Gulf shift toward permanent chokepoint-bypass infrastructure that could sharpen competition for export share once flows normalize. The disclosure may function primarily as a signal to Iran and oil markets that Gulf producers are hardening against future disruption, well ahead of any final investment decision.
6 sources
  1. Saudi Arabia considers expansion of oil pipeline to Red Sea, sources say - Arab News
  2. Saudi Arabia considers expansion of oil pipeline to Red Sea, sources say - Al Arabiya English
  3. Saudi Arabia considers expansion of Red Sea oil pipeline - AGBI
  4. Saudi Arabia Explores East-West Pipeline Expansion to Bypass Strait of Hormuz - Egypt Oil & Gas
  5. Saudi Arabia Eyes Major Red Sea Pipeline Expansion to Bypass Hormuz - OilPrice.com
  6. Saudi Arabia considers expansion of oil pipeline to Red Sea, sources say - Reuters

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