Saudi Arabia and UAE Oil Pipelines Bypass Strait of Hormuz Amid Iran War

As the conflict in Iran escalates, Saudi Arabia and the United Arab Emirates are increasingly relying on oil pipelines that bypass the strategically vital Strait of Hormuz. These pipelines, while not a complete replacement for the chokepoint, offer a crucial alternative for exporting oil amid heightened tensions and the risk of disruption.

The Importance of Bypassing the Strait of Hormuz

The Strait of Hormuz, a narrow waterway between Iran and Oman, is a critical oil transit route, responsible for approximately 20% of global oil supply. Recent closures due to the U.S. And Israel’s strikes against Iran have underscored the vulnerability of this chokepoint, prompting Saudi Arabia and the UAE to activate alternative routes.

Saudi Arabia’s East-West Pipeline (Petroline)

Saudi Arabia’s East-West pipeline, also known as Petroline, is a roughly 750-mile system connecting the oil-rich eastern Gulf coast at Abqaiq to the Red Sea port of Yanbu. Originally built in the 1980s in response to the Iran-Iraq war, the pipeline serves as a contingency plan to ensure oil exports even during disruptions in the Gulf.

Following recent expansions, Petroline has a total design capacity of 7 million barrels per day. Saudi Aramco expects the network to reach full capacity in the coming days, though the risk of infrastructure damage remains a concern. Aramco CEO Amin H. Nasser warned of “catastrophic consequences for the world’s oil markets” if the disruption continues.

UAE’s Abu Dhabi Crude Oil Pipeline (ADCOP)

The UAE also operates a pipeline bypassing the Strait of Hormuz: the Abu Dhabi Crude Oil Pipeline (ADCOP), or Habshan–Fujairah pipeline. Spanning approximately 248 miles from onshore oil facilities at Habshan to Fujairah, ADCOP is estimated to handle 1.5 million barrels per day, with a reported total capacity of close to 1.8 million barrels per day.

Risks and Challenges

While these pipelines offer a vital alternative, they are not without risks. The Petroline has been previously targeted by attacks from Iranian-backed Houthi rebels in Yemen, highlighting the potential for infrastructure damage. Both pipelines face the threat of disruption, limiting their total capacity estimates.

Looking Ahead

The increased reliance on these pipelines demonstrates the urgent need for alternative oil export routes in the face of geopolitical instability. As the conflict in Iran continues, Saudi Arabia and the UAE will likely continue to maximize the use of these critical infrastructure assets to ensure a stable global oil supply.