Saudi Gas Pipeline May Be Converted to Crude Oil Route?

Saudi Arabia is considering raising its crude export capacity through the pipeline route to 10 million barrels per day. Converting a gas pipeline into a crude transport line could add 1.2 million barrels per day within seven to eight weeks. Yanbu's loading capacity may prevent full use of the added capacity […]

At a glance, Saudi Arabia is considering increasing the oil export capacity from the pipeline route to 10 million barrels in the minutes of the new meeting of the Central Bank of Australia, paving the way for another increase in interest rates. put under pressure Kushner's investors: The diesel agreement is an attempt to soften Russia's position and return to negotiations. Kushner, the US envoy, announced that the diesel agreement is an attempt to soften Russia's position. According to 3 informed sources, Intel has started sending samples of D-series graphics processors to customers. Intel has started sending samples of D-series graphics processors to its customers. This company also accused Britain of false flag operations at the Fairford base by denying London's claim. Iran's Ministry of Foreign Affairs categorically rejected Britain's accusations regarding Tehran's connection with the security incident at the Fairford base. Subscribe to the YouTube and Times newsletter.

Saudi Arabia is considering plans to increase oil export capacity by pipeline to 10 million barrels per day. According to Prince Abdulaziz bin Salman, the energy minister of this country, converting a gas pipeline into an oil transmission line can add 1.2 million barrels per day to the transmission capacity within seven to eight weeks.

These statements indicate the quick implementation of part of a long-term plan. The Saudi Ministry of Energy has said that increasing the capacity of oil pipelines to 10 million barrels per day will take two to three years; Therefore, the conversion of the gas line can provide a significant increase in capacity before this development is completed.

The East-West pipeline, which connects fields and processing facilities near the Persian Gulf to the Red Sea port of Yanbu, has a capacity of about 7 million barrels per day. After the disruption of oil shipments in the Strait of Hormuz following the war between America and Iran, Saudi Arabia has transferred about 4 million barrels of oil daily to Yanbu through this route. According to Reuters, this figure is equivalent to about 4% of global supply.

This route has not been spared from the attack either. The pipeline was derailed in September after a drone strike from Iraq; Saudi Arabia attributed the attack to Iraqi militias. The Argus reported, citing sources, that three of the line's 11 pumping stations were damaged, and one of them had significant damage, but the pipeline itself was not damaged. Prince Abdulaziz said on October 6 that flows had returned to nearly 6 million barrels per day and operations had resumed about a week after the attack.

In a separate incident, Aramco shut down its 400,000 bpd Jizan refinery on the Red Sea coast after a Houthi attack in early September.

The discussion of increasing the capacity of the pipeline was also raised earlier. Earlier, Reuters reported, citing sources, that Saudi Arabia is considering increasing the capacity of the East-West line by one to two million barrels per day; A plan that may also include the possibility of transferring oil products.

However, the capacity of the Yanbu port may become the main obstacle. Ship tracking data shows that this port has the capacity to load about 4.5 million barrels per day; A capacity that is less than the nominal capacity of the pipeline. As a result, the transfer of a larger volume of oil will depend on the proportional increase in the loading capacity at the terminal.

This plan also shows that Riyadh is preparing for continued disruption in the Strait of Hormuz. Markets are now following the details of the line to be repurposed, the timing of the terminal expansion and the security of the route that has already been targeted.