Gulf Countries Rush to Diversify Oil Exports Amid Hormuz Disruption

The Strait of Hormuz disruption has prompted oil-producing countries in the Gulf to accelerate plans for alternative export routes. Pipeline projects have been announced or revived, with a focus on maximizing existing capacity and completing planned projects.

Saudi Arabia transported around 2 million barrels per day (mbd) of crude through its East-West Pipeline before the war broke out in February. Aramco increased the pipeline's capacity to 7 mbd, leaving up to 5 mbd of spare capacity. Riyadh is planning a further expansion of up to 2 mbd, which could be completed by 2030/2031.

The UAE exported around 1.1 mbd of crude through its Abu Dhabi Crude Oil Pipeline (ADCOP) before the conflict. The pipeline had a capacity of 1.8 mbd, leaving an additional 0.7 mbd available. A second pipeline is being constructed to bypass the Strait of Hormuz and double export capacity through Fujairah.

Iraq plans to restore a major pipeline linking its oil fields with Syria's Mediterranean coast, which would have an initial capacity of 2 mbd. However, no timetable has been announced, and political and investment hurdles risk delaying the project.