Anabelle Colaco
09 Jul 2026

DUBAI/LONDON: Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the Red Sea, a move that would allow the kingdom and potentially neighboring Middle East states to export more oil without relying on the Strait of Hormuz, five sources familiar with the matter said.

The East-West pipeline, built in the early 1980s, has become increasingly important since the war in Iran began in February and shipping through the Strait of Hormuz was disrupted.

The pipeline currently transports up to seven million barrels per day (bpd) of crude to the Red Sea port of Yanbu. According to Aramco Chief Executive Amin Nasser in May, about two million bpd supplies refineries on Saudi Arabia's west coast, while roughly five million bpd is exported.

Saudi Arabia has begun preliminary discussions with some neighboring countries about increasing the pipeline's capacity by up to two million bpd, the sources said.

It remains unclear whether the expansion would involve upgrading the existing pipeline or constructing new infrastructure. One source said the project could include a smaller second pipeline to transport refined oil products.

Kuwait, Bahrain and Qatar currently have no export routes that bypass the Strait of Hormuz, while Iraq's pipeline to Turkey continues to operate well below capacity because of repeated shutdowns and disputes.

"We are in discussions with our brothers in Saudi Arabia and in the emirates to look at how to expand the pipeline system that they have to accommodate Kuwaiti barrels," Kuwait Petroleum Corporation CEO Sheikh Nawaf al-Sabah told the Atlantic Council Global Energy Forum last month.

Two of the sources said the expansion could add between one million and two million bpd of capacity, with refined products also under consideration. Another source said the project would take years to complete, cost billions of dollars and require changes to Saudi crude's pricing mechanism.

The disruption of shipping through the Strait of Hormuz forced Middle East producers to shut in as much as 12 million bpd of production before exports partially resumed following a preliminary U.S.-Iran agreement last month.

"The recent talks about new pipeline corridors involving Saudi Arabia, Kuwait and Qatar reflect a broader strategic reality. The conflict has focused minds regionally on the perils of relying solely on Hormuz," said Zaid Belbagi, managing partner at London-based Hardcastle Advisory.

Aramco declined to comment, while the Saudi and Bahraini government communications offices, Iraq's oil ministry and QatarEnergy did not immediately respond to requests for comment.