Saudi Arabia Resumes Operations at the East-West Oil Pipeline

Saudi Arabia Resumes Operations at the East-West Oil Pipeline

Saudi Arabia has restarted operations on its East-West oil pipeline and could resume crude exports from the Red Sea port of Yanbu later on September 22, three sources briefed on the matter told Reuters, easing pressure on global oil supplies after drone attacks forced the key export route to shut down.

The pipeline was initially restarted at a low pumping rate, with Saudi Aramco expected to gradually increase flows, according to Reuters. Aramco had not immediately responded to a request for comment at the time of publication.

The East-West Pipeline, also known as Petroline, was shut on September 13 following drone attacks, halting crude loadings at Yanbu. The restart would restore Saudi Arabia’s ability to move crude from its eastern producing areas to the Red Sea while reducing its reliance on maritime routes through the Strait of Hormuz.

The International Energy Agency (IEA) has identified Saudi Arabia’s East-West system as one of the limited operational crude routes capable of bypassing the Strait of Hormuz. The agency estimates that Saudi Arabia and the UAE together have around 3.5 million to 5.5 million b/d of available alternative export capacity, although the logistics required to reroute substantial volumes have not been extensively tested.

Before the latest restart, Reuters reported that Saudi Arabia was facing a potential major export disruption because stocks at Yanbu could sustain shipments for only several days without pipeline flows. Industry sources estimated that the kingdom had been rerouting around 4 million b/d through the East-West system, equivalent to about 4% of global oil supply.

Meanhile, Saudi Arabia has increased crude oil loadings from its Gulf export terminals after a drone attack disrupted shipments through its East-West Pipeline to the Red Sea, with Saudi Aramco loading about 14 million barrels (mmbbl) onto seven very large crude carriers (VLCCs) at Ras Tanura on September 20. The higher Gulf loadings indicate a partial recovery in Saudi crude exports after the attack forced the shutdown of the kingdom’s East-West Pipeline and suspended crude loadings at the Red Sea port of Yanbu.

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Sarah Samir 4365 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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