Gulf: Gulf countries are revisiting pipeline projects to bypass the Strait of Hormuz as the latest conflict revives concerns over the region's dependence on one of the world's most important oil and gas chokepoints.
According to Anadolu Agency, the renewed debate reflects growing concern that prolonged Iranian control or disruption in the strait could leave Gulf exporters exposed, pushing officials and industry executives to reconsider options that were once viewed as too costly or too difficult to implement.
The current crisis has reinforced the strategic value of Saudi Arabia's East-West pipeline, a 1,200-kilometer route that carries crude to the Red Sea port of Yanbu and allows exports to avoid Hormuz entirely. One senior Gulf energy executive described the pipeline as looking like a masterstroke in retrospect.
Saudi Aramco CEO Amin Nasser also highlighted the line's importance, saying it is the main route that is being capitalized on right now, as the kingdom weighs whether to expand its capacity further or develop additional export routes and terminals on the Red Sea coast.
The report from Anadolu Agency mentioned possible long-term options could include broader trade corridors stretching from India through the Gulf to Europe, while some executives argued that pipelines to Mediterranean outlets will eventually be built. Yossi Abu, CEO of Israel's NewMed Energy, emphasized the need for control over destinies with allies.
Industry executives warned that the obstacles remain severe. Christopher Bush, CEO of Lebanon-based Cat Group, noted that replicating Saudi Arabia's East-West pipeline today would incur significant costs, while more complex routes from Iraq through Jordan, Syria, or Turkey could require substantial investment.
Bush highlighted security risks in Iraq, such as unexploded bombs and militants, while routes to Oman would face engineering challenges across difficult terrain. Political disputes over ownership and control of flows would also complicate any regional network.
In the near term, expanding existing infrastructure, including Saudi Arabia's East-West pipeline and Abu Dhabi's route to Fujairah, is seen as the most realistic option. Bush emphasized the urgency of the issue, with smart minds now addressing the problem.
The US-Israel war with Iran and rising tensions in the Strait of Hormuz have disrupted regional energy flows, contributing to supply concerns and upward pressure on global prices. On March 2, Iran announced restrictions on navigation in the strategic waterway, warning it could target vessels transiting without coordination.
About 20% of the global oil supply passes through the strait daily, and heightened insecurity has driven up oil prices as well as shipping and insurance costs.