Saudi Arabia Expands Petroline Capacity Amid Geopolitical Risks
Saudi Arabia is taking advantage of its Red Sea infrastructure to advance its logistics ambitions, with potential expansion of the East-West Crude Oil Pipeline, or Petroline.
The nearly 1,200 km pipeline has become more than just an energy asset. It connects oil fields in Saudi Arabia's Eastern Province to the Red Sea port of Yanbu, complementing investments in ports, industrial cities, and logistics zones that strengthen supply chain resilience while supporting Vision 2030's ambition to position the Kingdom as a global logistics hub.
A proposed expansion by up to 2 million barrels per day would reflect Riyadh's efforts to align strategic energy infrastructure with its broader trade and logistics ambitions. This move aims to increase export capacity, enabling Saudi Arabia, and potentially neighboring Gulf states, to export more crude without transiting the Strait of Hormuz.
Energy economist Carole Nakhle believes that the proposed expansion is less about increasing export volumes than enhancing Saudi Arabia's strategic resilience. 'The proposed expansion is about much more than increasing export capacity,' she said. 'It is an investment in strategic flexibility.'