The refining unit at the Port of Duqum in Oman is operating smoothly, and the outline of Saudi Arabia's new round of cross bay pipeline layout is gradually becoming clearer. A new oil corridor will directly connect Saudi Arabia's inland oil fields with the Indian Ocean coast, and the strategic layout of bypassing the Strait of Hormuz is moving from discussion to implementation.

New pipeline enters feasibility study stage

The CEO of Total Energy revealed during the New York Investor Day event that Saudi Arabia has begun to advance the new oil pipeline project to Dukum. The total length of this pipeline is about 1000 kilometers, and the development cost can reach up to 7 billion US dollars. Currently, it is in the feasibility study stage as a whole.

Previously, the Saudi East West oil pipeline was briefly shut down due to a pump station attack. Although it has resumed operation and crude oil exports have rebounded to the highest level since the outbreak of the conflict, the vulnerability of a single alternative channel has been fully exposed. As the location of Oman's largest refinery, Dukum naturally has the infrastructure conditions to undertake large-scale crude oil transportation, becoming the core anchor point of the new route.

Gulf countries collectively promote diversified channels

Before the war, the Strait of Hormuz accounted for about one-fifth of the world's energy transportation volume. After the conflict broke out, shipping efficiency significantly decreased, and the safety pressure on the export channels of Gulf countries continued to rise. In addition to Saudi Arabia, the United Arab Emirates is also accelerating the construction of the second parallel oil pipeline in Fujairah, which will directly double the transportation capacity bypassing the strait after it is put into operation. Keywords: oil pipeline project, energy transportation volume

At present, the only trans regional outward transportation channel for Iraq is the oil pipeline to Türkiye, with a daily transportation volume of about 250000 barrels, accounting for only one tenth of its total exports. Total Energy is also participating in the layout of related projects to help Gulf countries further expand their crude oil export routes beyond the Arabian Gulf. After the completion of the new pipeline, Saudi crude oil can directly enter the Indian Ocean, significantly reducing dependence on key strait channels and making the supply routes to Asian customers more stable and smooth.Editor/Cheng Liting