Saudi Arabia targets 10 million bpd pipeline capacity within three years

Summary

• Energy Minister Abdulaziz bin Salman said pipeline capacity will reach 10 million barrels daily within 2-3 years.
• A gas line is being converted for dual use, adding about 1.2 million barrels daily.
• The push gives Riyadh export routes that bypass the Strait of Hormuz.

The latest

Saudi Arabia plans to lift its oil pipeline capacity to 10 million barrels per day within two to three years, Energy Minister Prince Abdulaziz bin Salman said at the 25th World Petroleum Congress in Riyadh on Monday. Upgraded pumping stations on the East-West pipeline are part of the plan. He also said the kingdom intends to internationalize ownership and financing of its pipeline network.

Details

• The conversion: The minister said the government is working with Aramco to prepare one of its gas pipelines for dual oil-and-gas use, allowing roughly 1.2 million barrels of oil per day to move within seven to eight weeks. The line is scheduled to revert to gas service by May to cover summer demand.
• The upside: Additional investment in that same line could push its capacity to 3 million barrels per day, Abdulaziz said, strengthening the kingdom's ability to diversify how crude reaches market. He did not attach a cost figure or a timeline to that expansion.
• The ownership plan: The minister said the concept rests on diversifying ownership, operation and financing so a line belongs to neither Saudi Arabia nor Kuwait alone, arguing that broader international participation improves the odds of protecting the infrastructure. Riyadh is seeking foreign stakes in its pipelines; Kuwaiti participation was named, other prospective partners were not.
• East-West today: The East-West pipeline has a maximum capacity of about 7 million barrels per day, according to Saudi energy ministry data. It runs roughly 1,200 kilometers from the eastern province to Yanbu on the Red Sea. On 6 October, the minister said volumes through the line had reached 5.8 million barrels per day.
• Exports holding: Abdulaziz said Saudi oil exports have performed strongly despite supply disruption from regional geopolitical tensions. He said he would disclose the export volumes at some future point and expected the numbers to surprise many. He gave no date for that disclosure.
• The tanker data: Figures from energy flow tracker Kpler showed Saudi exports averaged 5.31 million barrels per day in the first week of October, against a September average of 7.12 million. September was the highest monthly level since the Iran war began and close to the 7.33 million recorded in February, before the fighting started.
• The investment line: In his conference address, the minister stressed long-term spending on pipelines, storage and operational capacity to keep supply flowing and restore operations quickly during crises. A day earlier, at the International Energy Forum in Riyadh, he said building new export lines costs far less than not having them.
• Vision 2030: Abdulaziz said the kingdom will not retreat from its commitments, and that Vision 2030 and energy sector investment will continue despite regional tensions. He listed oil, gas, renewables, power grids, storage and gas infrastructure as areas of continued spending, alongside low-emission technologies.
• On net zero: The minister criticized countries pursuing net-zero policies as electricity and fuel costs rise, saying some treat the target as doctrine. He repeated his description of the International Energy Agency's net-zero scenario as a "La La Land" scenario, adding that global policy has grown more realistic about balancing security, sustainability and affordability.
• Renewables and AI: He said Saudi Arabia is posting record figures in renewables and battery storage and is working to expand capacity to meet future demand, including growth tied to artificial intelligence.

Background

The Strait of Hormuz is the chokepoint for a large share of Gulf crude exports. Attacks on tankers and disrupted navigation there have pushed producers to look for routes that avoid it entirely, which is what the East-West line to the Red Sea provides.

Between the lines

The ownership plan reads as a security measure as much as a financing one: the minister tied broader international shareholding directly to protecting the infrastructure. A pipeline with foreign stakeholders raises the political cost of striking it. The timeline he gave for the gas line conversion — seven to eight weeks, reverting by May — also signals this is a flexible stopgap rather than a permanent route change.

What's next

Watch for the gas line conversion to begin within seven to eight weeks, its scheduled return to gas service by May, and the export volumes the minister said he would eventually disclose.

Source: Asharq Bloomberg, Kpler