Reuters: Saudi Arabia Studies Increasing Capacity of Oil Pipeline to Red Sea

Barrels of oil

Reuters reported, citing informed sources, that Saudi Arabia is studying increasing the capacity of the crude oil pipeline to the kingdom's western coast on the Red Sea, which would enable it to transport larger quantities of oil without needing to cross the Strait of Hormuz.

The sources said the kingdom is holding preliminary discussions with some neighboring countries regarding a potential expansion of the pipeline capacity by up to 2 million barrels per day.

It added that it was not clear whether the pipeline capacity increase planned by Saudi Aramco would include upgrades to existing infrastructure or construction of a new pipeline.

One source mentioned that the increase would include a second, smaller pipeline to transport petroleum products.

According to Argaam data, the CEO of Aramco said last May that the East-West pipeline, which reached its maximum capacity of 7 million barrels of oil per day in just 8 days, proved to be a vital artery to ensure continued supplies of oil and other products to markets, helping to alleviate the effects of the global energy shock and providing support to customers affected by shipping restrictions in the Strait of Hormuz.

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