Arab Producers Seek Hormuz Alternatives Through Six Pipeline Routes

Arab oil producers are turning to six pipeline routes to maintain crude exports outside the Strait of Hormuz, with three operational and three under development or consideration, according to a report by the Washington-based Attaqa Research Unit.

The existing alternatives include Saudi Arabia's East-West pipeline, which was built in the 1980s and can move up to seven million barrels per day (bpd), and the UAE's Habshan-Fujairah link, completed in 2012 with a capacity of between 1.5 million and 1.8 million bpd.

Future projects comprise Iraq's Kirkuk-Baniyas corridor, which is estimated to cost at least $15 billion and have a construction period of about four years, and the UAE's West-East pipeline, designed to carry up to 1.5 million bpd from Jebel Dhanna to Fujairah.

These alternatives are being sought due to the disruption caused by fighting between Iran and the United States in the Strait of Hormuz, which normally handles roughly 20% of global oil flows. The search for alternatives has gained urgency since Kpler recorded 10 commodity-carrying vessels crossing the Strait on Aug. 26, below the 10-day average of about 15.