Aramco expands export routes amid attacks on Saudi oil infrastructure

Saudi Aramco is taking steps to strengthen its oil export network following repeated attacks on its energy infrastructure. CEO Amin Nasser revealed the company is developing a fourth and fifth export route and exploring additional overseas storage to mitigate short-term disruptions. Despite ongoing attacks, Aramco claims it is meeting all customer demands and can supply 12 million barrels per day if needed. Nasser emphasized the company's ability to repair damaged infrastructure quickly, even as fires are still active.

The attacks, primarily from Yemen’s Iran-backed Houthi rebels, have highlighted vulnerabilities in Saudi Arabia’s oil supply routes, particularly the East-West pipeline. To maintain exports, Aramco continues to rely on routes like Yanbu, Egypt’s Sidi Kerir, and Port Said, along with ship-to-ship transfers. Nasser also warned that commercially available data, such as satellite imagery and shipping logs, is being used to target energy infrastructure, increasing security risks.

Despite the challenges, Aramco has not needed to use its strategic product reserves. However, the disruptions have caused a significant premium in the physical oil market, with some barrels trading $20 to $50 above the Brent benchmark. Nasser warned that the impact of these disruptions could persist even after supply routes stabilize, with the need for an additional 2 million barrels per day of demand over the next 18 months to rebuild inventories.

Looking ahead, Aramco has set long-term goals for natural gas production, aiming to produce around 9 million barrels of oil equivalent per day by 2040. This target is part of the company’s broader strategy to diversify its energy portfolio beyond immediate security concerns.