Saudi Arabia to Expand East-West Pipeline to Reduce Oil Exports via Gulf

SMEStreet Desk July 26, 2019Last Updated: July 26, 2019

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Saudi Arabia aims to raise the capacity of its east-west pipeline by 40% in two years so more of its oil exports can avoid passing through the Strait of Hormuz, the energy minister said on July 25.

Khalid al-Falih also told media that importers should, as a first immediate step, secure shipments through the strategic waterway at the mouth of Gulf, after attacks on oil tankers in the area and the seizure of a British-flagged ship by Iran.

Falih said the international community should take swift action to protect oil supplies and secure the Strait, through which about a fifth of the world’s oil passes.

Oil importers “have to do what they have to do to protect their own energy shipments because Saudi Arabia cannot take that on its own,” he said in an interview during a visit to India.