East-West Oil Pipeline Capacity Expansion

planned

Saudi Arabia is considering expanding the capacity of its East-West oil pipeline by up to 2 million barrels per day to allow more exports to bypass the Strait of Hormuz. The existing pipeline, built in the early 1980s, currently ships up to 7 million barrels per day from eastern oil fields to the Red Sea export terminal at Yanbu. The expansion could involve upgrades to existing infrastructure, construction of a new pipeline, or a combination of both, including a smaller second pipe for oil products. The project would take years, cost billions of dollars, and require changes to Saudi oil's pricing mechanism.