Thursday, April 2nd 2026
The threat to Iran’s long-term control of the Strait of Hormuz is forcing Gulf states to reconsider expensive plans to build pipelines that would bypass the main shipping route and allow oil and gas exports, reports the Financial Times.
Energy officials and executives say new pipelines may be the only way to reduce Gulf states’ long-term vulnerability to disruptions. shipping through the strait, although such projects are costly, politically complex and take years to complete.
‘East-West Pipeline Looks Like a Stroke of Genius’
The conflict has further highlighted the strategic value of Saudi Arabia’s 1,200-kilometer East-West pipeline. Built in the 1980s amid fears that a war between Iran and Iraq could close the strait, it is now a key infrastructure that transports about 7 million barrels of oil a day to the Red Sea port of Yanbu, bypassing Hormuz entirely.
“In retrospect, the East-West pipeline looks like a stroke of genius,” a senior Gulf energy official told Financial Times.
Amin Nasser, chief executive of Saudi state oil company Aramco, told analysts last month that the pipeline was “the main route we rely on right now.”
Saudi Arabia is now considering how to divert most of its 10.2 million barrels per day of oil production overland, rather than through Iranian-controlled waters. This includes expanding the capacity of an existing pipeline or building new ones.
Previous plans for regional pipelines have often failed due to high costs and complexity. But Maisoon Kafafy of the Atlantic Council says the atmosphere in the Gulf is now changing. “I sense a shift from theoretical discussions to operational reality. Everyone is looking at the same map and reaching the same conclusions,” she told the Financial Times.
Instead of individual projects, the most sustainable solution would be to create a network of interconnected oil pipelines, although this is also the most difficult to achieve. Such projects could become part of a wider trade infrastructure in the long term, through which, in addition to energy, other goods will flow.
One possibility is the revival of the US project of the IMEC economic corridor, which will connect India, the Gulf and Europe. But part of that plan also included a politically sensitive oil pipeline to the Israeli port of Haifa. This corridor was also recently discussed by Benjamin Netanyahu when he said that after the attack on Iran, this idea would become the main one on the table.
Yossi Abu, director of the Israeli company NewMed Energy, is convinced that oil pipelines in the Mediterranean will still be built, either to Israeli or Egyptian ports. “People need to control their own destiny, along with their allies. We need pipelines and rail connections throughout the region, without obstacles that can block us,” he said.
Christopher Bush, director of the Lebanese company Cat Group, which was involved in the construction of the Saudi pipeline, says there has been interest in new projects for a long time.
“We have received requests for various projects. There are several presentations in my desk,” he told the Financial Times. But the hurdles remain high. It is estimated that building a new pipeline similar to the Saudi one today would cost at least $5 billion, or about 4.6 billion euros.
More complex projects involving multiple countries, such as routes from Iraq through Jordan, Syria or Turkey, could cost between $15 and 20 billion, or about 14 to 18.5 billion euros.
Bush also warns of serious security risks, including unexploded bombs in Iraq and the presence of extremist groups such as ISIS. Pipelines to Oman will have to pass through desert and mountainous terrain, adding to the technical challenges.
Oman’s ports are not completely secure. Recent drone attacks on the key port of Salalah forced it to be temporarily closed. Political challenges include issues of pipeline control and revenue sharing. To create a regional network, the Gulf countries will have to abandon individual policies and work together.
“It has always been easier and cheaper to load oil on a ship and transport it by sea,” Bush said.
What is realistic in the short term?
In the short term, the most promising options are to expand the existing pipeline. East-West Saudi Arabia and increasing pipeline capacity from Abu Dhabi to the port of Fujairah. Saudi Arabia is also considering developing additional export terminals in the Red Sea, including a deep-sea port as part of the Neom project.
“I’m sure they’re looking at that option. There’s a lot of smart people working on that right now,” Bush said. Saudi Arabia’s energy ministry did not respond to a request for comment from the Financial Times.
A senior official said Abu Dhabi had long had plans for an additional pipeline to Fujairah, but that no decisions would be made until the long-term status of the Strait of Hormuz was clarified. /tesheshi.com/
We use cookies to improve the experience and to display ads (Google AdSense).
By clicking “Accept”, you agree to the use of cookies according to
Privacy Policy
and
Cookies Policy.
You can reject non-necessary cookies by clicking “Reject”.
Source: prizrenpost
