Associated Press reported that Middle East oil-producing countries have accelerated multi-billion-dollar plans to create alternative routes for exporting oil after disruptions in transit from the Strait of Hormuz.
At least seven pipeline projects are under construction, planned, or being reviewed.
Saudi Arabia and the United Arab Emirates are now using existing lines to the Red Sea and the Arabian Sea near maximum capacity, and the UAE is building a three-billion-dollar pipeline to Fujairah.
Iraq is also looking at routes to Turkey, Syria, and Jordan.
Goldman Sachs estimates that new capacity to bypass Hormuz will reach 7.3 million barrels per day by the end of 2028, enabling the transfer of about 60% of pre–Gulf War export volumes without passing through Hormuz.
However, the alternative routes are longer, more costly, and vulnerable to attacks, and they do not solve Qatar’s LNG export problem.
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