TotalEnergies Bets on Two Pipelines to Bypass Strait of Hormuz

TotalEnergies is hedging against future disruptions in oil exports by investing in two major pipelines that will bypass the Strait of Hormuz. The company's CEO, Patrick Pouyanné, announced the commitments at the ONS energy conference in Norway on Monday.

The first pipeline will carry Iraqi crude from Baghdad to the Mediterranean through Syria, giving Baghdad a new export route for its oil. The project could cost around $15 billion and take at least four years to complete, according to recent estimates.

TotalEnergies is also investing in Abu Dhabi's expansion of its Fujairah export route, which will double the existing pipeline's capacity from 1.8 million barrels per day to roughly three million barrels per day by next year.

Pouyanné said that TotalEnergies needs to put equity into alternative routes, given its status as one of the largest traders of oil from Iraq and Qatar.