Saudi Arabia Fully Activates East-West Pipeline to Bypass Strait of Hormuz Closure
Saudi Arabia has brought its critical East-West pipeline into full operational capacity, according to a person familiar with the matter. The kingdom is now pushing approximately 7 million barrels of oil per day through this strategic route as it works diligently to maintain global supplies following the effective shutdown of the vital Strait of Hormuz.
Pipeline Becomes Central to Export Strategy
The pipeline, which stretches more than 1,000 kilometers (620 miles) across the kingdom from oil-producing regions in the east to Yanbu on the Red Sea coast, has become absolutely central to Saudi efforts to keep exports flowing. With the main passage through the Strait of Hormuz disrupted, oil shipments are being systematically rerouted to Yanbu, where tankers are actively loading crude for international markets.
This alternative route offers a crucial lifeline at a time when traditional shipping channels have been severely compromised. According to Bloomberg, which cited the knowledgeable source, crude shipments from Yanbu have now reached about 5 million barrels per day. In addition to this substantial volume, between 700,000 and 900,000 barrels per day of refined petroleum products are being exported through this channel.
Distribution and Capacity Analysis
Of the total volume transported via the East-West pipeline, approximately 2 million barrels per day is directed toward domestic refineries within Saudi Arabia. This distribution ensures that both international markets and domestic needs are being addressed through this alternative infrastructure.
It is important to note that even at full capacity, this pipeline route does not completely replace the volumes previously shipped through the Strait of Hormuz. Before the current conflict, Hormuz handled roughly 15 million barrels of oil daily. However, the availability of this substantial alternative has significantly helped limit the extent of price increases compared to earlier supply disruptions in global markets.
Historical Context and Current Implementation
Saudi Arabia had long prepared for precisely this scenario in which the Strait of Hormuz could become inaccessible. The kingdom's comprehensive contingency plan was put into action within hours of the first US and Israeli strikes on Iran, with flows along the east-west pipeline increasing steadily since those initial military actions.
The pipeline was originally developed in response to risks highlighted during the 1980s Iran-Iraq war, when tanker attacks disrupted movement through the Strait of Hormuz. However, the current situation has led to a near-closure on a scale not witnessed in previous decades, making this infrastructure more critical than ever before.
Emerging Concerns in the Red Sea
Market concerns are now gradually shifting towards the Red Sea region after Yemen's Houthi rebels declared they are entering the broader conflict. While there has been no specific indication of plans to target vessels passing through the Red Sea or the Bab El-Mandeb strait, the group has in the past threatened shipping in the region using drones and missiles.
This development adds another layer of complexity to the global oil supply chain, as the Red Sea route becomes increasingly important for bypassing the closed Strait of Hormuz. The situation remains fluid, with international observers closely monitoring potential threats to this alternative shipping corridor.
