🔶 Aramco seeks to develop an alternative pipeline to the Strait of Hormuz

🔶 Aramco seeks to develop an alternative pipeline to the Strait of Hormuz

The chief executive of Saudi Arabia’s oil company Aramco said the company is considering developing an east-to-west pipeline to transport crude oil to Red Sea export terminals and bypass the Strait of Hormuz.

In a statement provided to Reuters in this regard, Amin Nasser, referring to disruptions to traffic in the Strait of Hormuz, said Aramco is also looking for alternative routes for exports and for increasing oil storage capacity outside this country.

The U.S.-Israel war with Iran has reduced Aramco oil production, but a rise in global oil prices has offset the revenue loss caused by reduced production volume.

The Aramco CEO also referred to 130 reported attacks on oil tankers in the Strait of Hormuz and added that the cost of transporting oil by sea has increased by more than 15 times compared with last year.

Before the fighting began, about 20% of global oil supply passed through the Strait of Hormuz. The Saudi east-to-west pipeline has the capacity to move up to 7 million barrels of oil per day and, during the U.S.-Iran war, has been targeted by attacks several times.