Saudi Aramco’s East-West pipeline is proving its value as a Hormuz-bypass mechanism, enabling the company to continue exporting substantial volumes of crude oil and refined products during what CEO Amin Nasser describes as “by far the biggest crisis the region’s oil and gas industry has faced.” The pipeline supplies crude oil to the Red Sea export terminals at Yanbu, which can then be exported without transiting Hormuz.
Speaking to media on 10 March, Mr Nasser hailed the flexibility that Aramco’s investment in this contingency route has provided it with. Prior to the closure of the Strait of Hormuz that has blocked exports from its primary Gulf coast export terminals at Ras Tanura, the pipeline was carrying a little more than 2mn b/d for primarily domestic consumption, but Mr Nasser said pipeline throughputs will hit maximum 7mn b/d levels within a matter of days. (CONTINUED - 2240 WORDS)
