Saudi Arabia plans to expand its oil pipeline network to cut its reliance on the Strait of Hormuz. Energy Minister Prince Abdulaziz bin Salman said today that a gas pipeline is being converted to carry crude as well and could move around 1 million barrels a day within eight weeks, rising to 3 million with further investment. “We may end up with 10 million barrels of pipeline within two to three years, that can divert oil to a different destination,” he said, adding that the government, not Aramco, is footing the bill.
The urgency is growing as wars in the Middle East and Ukraine strain global oil supplies: Goldman Sachs raised its year-end oil price forecast over the weekend citing thinning inventories. But Iran is “not likely to stand by” as new export routes emerge, experts at the Center for Strategic and International Studies warned.