Saudi Arabia's Energy Minister, Prince Abdulaziz, stated at the World Petroleum Congress in Riyadh on Monday that Saudi Arabia plans to increase its crude oil pipeline capacity bypassing the Strait of Hormuz by 40% within two to three years, from the current 7 million barrels per day to 10 million barrels per day. According to the plan, Saudi Aramco will convert an existing natural gas pipeline to transport crude oil within seven to eight weeks, adding 1.2 million barrels per day of capacity, with further investment potentially increasing this to 3 million barrels per day. Simultaneously, it will upgrade the pumping stations on the east-west pipeline and negotiate with Kuwait to jointly build another bypass pipeline. After the outbreak of the Iran-Iraq War in February, which nearly closed the Strait of Hormuz, this approximately 740-mile-long pipeline leading to the Red Sea port of Yanbu maintained about 70% of Saudi Arabia's exports. However, it was suspended for about two weeks in September due to a drone attack, and on October 6th, its transport volume was 5.8 million barrels per day. However, the endpoint of the bypass route itself also faces risks. The Houthi rebels announced a blockade of Saudi shipping in July and seized several islands near the Bab el-Mandeb Strait in September. According to Reuters, a Houthi attack on Riyadh last Saturday killed 13 people. Following coalition airstrikes on fuel facilities in Sana'a and Hodeidah on Tuesday, the Houthis threatened retaliation against Saudi Aramco, and a limited fire subsequently broke out at Aramco's headquarters in Dhahran. Analysts believe that expanding the pipeline merely shifts the risk from the Strait of Hormuz to the Red Sea, but the Red Sea is becoming a second Hormuz, and the security of Saudi exports still depends on regional security cooperation.
